Corn futures revive as US cuts inventory forecast, citing strong ethanol use
Corn futures recovered, after the US made a deeper-than-expected cut to its estimate for domestic stocks, citing increased use of the grain in making ethanol.Here's the complete report at the USDA WASDE page:
But soybean and wheat futures fared less well, with the estimate revisions, made in the US Department of Agriculture’s much-watched Wasde crop report, bringing downgrades to expectations for US exports of both crops.
Chicago wheat futures for March, which had stood marginally higher ahead of the briefing, retreated to stand unchanged at $4.13 ½ a bushel in the aftermath, while soybean futures remained marginally in negative territory, at $9.80 a bushel.
Corn futures for March, however, rose as high as $3.52 ¾ a bushel after the briefing, a gain of 1.1% on the day.
The headway reflected a downgrade of 50m bushels to 2.44bn bushels in the USDA’s forecast for US corn inventories at the close of 2017-18.
Investors had expected a more modest downgrade, of 9m bushels.
However, the USDA raised by 50m bushels, to 5.525bn bushels, the forecast for use of corn in making bioethanol....MORE, with more to come.