Corn futures surged to six-week highs on Thursday, briefly extending a recent rally after the U.S. Department of Agriculture (USDA) released a monthly supply and demand report showing a sharper-than-expected reduction in U.S. stockpiles. Soybean futures also posted gains as the USDA trimmed domestic ending stocks, adding to supply concerns.
The agency’s latest outlook highlighted a tightening global corn supply, with global stockpiles projected to fall to the lowest levels in a decade. The further reduction reinforces bullish sentiment in the corn market, which has remained resilient despite volatility in broader financial markets driven by escalating tariff tensions.
Soybeans followed corn higher, bolstered by the USDA’s cut to U.S. ending stocks. However, estimates for major South American producers remained unchanged, with Argentina’s soybean crop forecast held at 49 million metric tons (MMT) and Brazil’s at 169 MMT. Corn crop estimates for both countries were also left intact.
In contrast, wheat futures dipped after the USDA raised its forecast for U.S. wheat stocks at the close of the 2024/25 marketing year and lowered expected exports. A more favorable global supply outlook for wheat further pressured prices.
Although the USDA’s report sparked brief price swings, market analysts expect traders to shift focus back to longer-term influences, including trade policy developments and upcoming U.S. spring weather conditions that could affect planting and yields.
In late trading, May corn rose 8.5 cents to $4.8250 per bushel, May soybeans climbed 15.25 cents to $10.28, and May Chicago wheat slipped 3.75 cents to $5.3850.
