By Julie Ingwersen
CHICAGO, U.S. (Reuters) – U.S. corn futures fell more than 5% Thursday on profit-taking after recently hitting multi-year highs, and a day after the Department of Agriculture forecast stocks greater than expected, according to analysts.
* Soybean and wheat futures fell sharply, also retreating from multi-year highs. “Today is a long-awaited correction in an overbought market,” StoneX chief commodities economist Arlan Suderman said in a note to clients.
* July corn in Chicago dropped the daily allowable limit from 40 cents to $ 6.7475 per bushel, while July soybeans fell 58.5 cents to $ 15.84 per bushel. Wheat for the same month fell 28.5 cents to $ 7.015 a bushel.
* Corn posted the largest percentage decline of the day after the USDA projected ending grain stocks for the 2021/22 season at 1.5 billion bushels, above most analysts’ expectations and more than 1.257 million. expected to remain at the end of 2020/21.
* The figure eased concerns about grain shortages that had pushed the July contract price to $ 7.3525 last week, the highest on a continuous chart of the most active corn contract since March 2013.
* “Obviously, the USDA forecasts carry considerable weight,” said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia. “Much of the market, however, sees these figures as optimistic,” he added.
* Commodity funds hold substantial net long positions in Chicago Corn and Soybean futures, making markets prone to position liquidation.
* Wheat was pressured by news that Russian agricultural consultancy SovEcon raised its forecast for the 2021 Russian wheat crop by 1 million tonnes to 81.7 million tonnes, citing a larger-than-expected acreage.
* Additionally, forecasts call for beneficial rains through next week in the US Southern Plains winter wheat belt, which could bolster the yield outlook.
(Additional information from Nigel Hunt in London and Colin Packham in Canberra; Edited in Spanish by Javier López de Lérida)