Chicago Board of Trade (CBOT) corn and wheat futures experienced a decline on Monday, influenced by reports of elevated stocks despite expectations of reduced plantings in 2024. The CBOT corn fell by 0.62% to $4.39-1/4 a bushel, with a Singapore-based trader noting that although corn acreage is expected to decrease, the market balance remains under pressure due to the substantial stock levels. The U.S. Department of Agriculture (USDA) recently reported a significant increase in U.S. corn stocks as of March 1, reaching 8.347 billion bushels, the highest level in five years, alongside projections of a 5% reduction in corn plantings compared to the previous year.
Wheat futures also declined by 0.36% to $5.58-1/4 a bushel, while the most-active soybean contract on the CBOT rose by 0.5% to $11.97-1/2 a bushel. Soybean stocks reached a two-year high of 1.845 billion bushels, while wheat stocks hit a three-year high at 1.087 billion bushels, as indicated by the USDA report. In other regions, Ukrainian farmers are expected to expand soybean planting area by 23.5% and reduce corn planting area by 4.5% this year. Romania reported increased wheat and maize harvests in 2023, while sunseed production decreased slightly.
Egypt aims to procure 3.5 million tonnes of local wheat during the 2024 season, while Saudi Arabia issued a tender to purchase 595,000 metric tons of wheat for June-July arrival.
Additionally, a vessel loaded by Russian grain exporter TD RIF departed a Black Sea port after meeting pest and disease certification requirements. French soft wheat crops have maintained stability but remain at their lowest level in four years, impacted by adverse weather conditions affecting planting and crop development in France and other parts of western Europe.