By Tom Polansek
CHICAGO, June 30 (Reuters) – Chicago Board of Commerce grain and soybean futures surged on Wednesday after the U.S. Division of Agriculture shocked merchants with lower-than-expected plantings estimates and stock knowledge.
Corn climbed by their every day exchange-imposed restrict after the USDA pegged plantings of the crop at 92.692 million acres, beneath analysts’ expectations for 93.787 million. The company mentioned soybean plantings had been 87.555 million acres, in comparison with analysts’ expectations for 88.955 million.
The U.S. estimates fueled world provide issues as inventories are slim and rising areas in North and South America are grappling with unfavorable climate.
“We wanted greater acres to present us a buffer and it went the fallacious manner,” mentioned Don Roose, president of Iowa-based brokerage U.S. Commodities.
CBOT December corn futures CZ1 ended up the every day 40-cent restrict at $5.88-1/2 a bushel. The restrict will briefly develop to 60 cents on Thursday, based on CBOT proprietor CME Group.
November soybeans SX1 climbed 86-1/2 cents to $13.99 a bushel and hit their highest worth in additional than two weeks. September wheat WU1 closed up 33-1/Four cents at $6.79-1/2 a bushel on the CBOT.
At MGEX, the front-month spring wheat contract MWEc1 reached its highest since February 2013.
The positive factors had been a turnaround from losses within the grain markets earlier than the USDA launched its plantings and shares knowledge.
In its quarterly shares report, the USDA mentioned home corn provides on June 1 stood at 4.122 billion bushels, the bottom for that date since 2014. Soybean shares got here in at a six-year low of 767 million and wheat shares had been 844 million, additionally the bottom in six years.
Analysts had predicted corn shares of 4.144 billion, soybean shares of 787 million and wheat shares of 859 million.
“There’s merely no margin of error for unhealthy climate, and we do have unhealthy climate,” mentioned Arlan Suderman, chief commodities economist for dealer StoneX.
(Reporting by Tom Polansek in Chicago, Naveen Thukral and Sybille de La Hamaide. Further reporting by Karl Plume and Chris Walljasper in Chicago. Modifying by Kirsten Donovan, Mark Potter and Richard Chang)
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