Oct. 13 (xinhua) -- Chicago wheat and corn tumbled on Wednesday, as a key report from U.S. government indicated a hefty jump in stocks and weaker demand. However, soybeans gained support from the report, as the estimate for soybeans stock and production were adjusted down.
The most active corn contract for Dec. delivery closed at 6. 4075 U.S. dollars per bushel, down 4.25 U.S cents, or 0.65 percent. Dec. wheat slumped 34 cents, or five percent, to 6.2675 dollars per bushel. November soybean rose four cents, or 0.32 percent, to 12.395 dollars per bushel.
Market analysts said that the Supply/Demand report released Wednesday by U.S. Department of Agriculture (USDA) played a significant role in propping up the prices of corn and wheat, as the report showed an expected rise in stockpile yet decreased demand.
According to the report, USDA expected that U.S. ending stocks of wheat for marketing year 2011/2012 would amount to 837 million bushels, as compared with traders'expectation of 735 million and 761 million bushels last month. For the world, the 2011/2012 ending stocks were raised to 202.4 million metric tons from 194.6 million metric tons last month.
Besides, USDA lowered U.S. wheat feeding to 160 million bushels from 240 million bushels last month and also lowered its exports estimate by 50 million bushels from last month to only 975 million bushels. Demand numbers for the world were far worse than the expected with wheat feeding dropping near five million metric tons.
Meanwhile, the USDA lifted the estimate for U.S. corn stock to 866 million bushels, which is about 60 million above expectations and higher than last month's estimate of 672 million. The world ending stocks were also adjusted higher to 123.2 million metric tons from 117.5 million last month and 129.7 million last year. But the U.S. exports were revised lower by 50 million bushels to 1. 6 billion, which was the lowest level in nine years.
However, The USDA reports were considered bullish for soybeans. The USDA pegged soybean production at 3.06 billion bushels, as compared with traders'expectations of 3.095 billion and 3.085 billion last month. Besides, the ending stocks for the 2011/2012 came in at just 160 million bushels, lower than earlier expectations of 185 million and 165 million last month.
Moreover, soybeans also gained support from market hearsay that China may have bought 120,000 metric tons of Brazil soy oil and 700,000-800,000 metric tons of U.S. soybeans for the purpose of restocking reserves.