CBOT weekly outlook: Corn, soy likely rangebound

CNS Canada — Soybeans and corn at the Chicago Board of Trade are likely to be rangebound following a report from the U.S. Department of Agriculture (USDA) on Wednesday.

USDA on Wednesday released its monthly world agricultural supply and demand estimates (WASDE), to which traders were looking for direction.

“Soybeans, corn — there’s probably a sideways trading range going forward in the short term,” said Terry Reilly of Futures International in Chicago.

Soybean ending stocks are now expected to reach 395 million bushels, which is higher than the September estimate of 365 million.

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“I have to question the USDA’s soybean carryout; they left it under 400 million bushels by increasing exports,” Reilly said.

He added he isn’t certain if the country can meet those targets, given the expectation for large crops from South America into 2017.

USDA increased its export numbers for the oilseed by 40 million bushels, to 2.025 billion.

Since last week, soybeans have lost US11.25 cents per bushel in the November contract.

“Now that the report is out of the way, the trade is doing a little bit of soybean, corn spreading,” Reilly said.

There could be light new fund money coming into the market in coming sessions, he added.

Domestic corn ending stocks for 2016-17 were pegged at 2.32 billion bushels, USDA said.

However, slightly lower production estimates could underpin the market moving forward.

This month’s report estimates corn production at 15.057 billion bushels, compared with a previously projected 15.093 billion.

Since last week corn prices have lost US10.75 cents per bushel in the December contract.

Jade Markus writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.

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