Soy, corn futures rally as US reports smaller-than-expected stockpiles

China bought more American soyabeans on Monday as the US Department of Agriculture reported stockpiles of the crop were smaller than traders expected, sending futures prices to nine-week highs.

Also adding some support was the continued delays in harvesting, though the USDA report on Monday largely met expectations for soybeans.

For example, spring wheat harvest in Montana was 84% finished on September 29 compared with the five-year average of 97% for that date.

Soybean condition rated 2 percent very poor, 9 poor, 27 fair, 56 good, and 6 excellent.

Chicago Board of Trade most-active soybeans were down 0.5% at $9.14-3/4 a bushel at 1037 GMT.

CBOT wheat futures eased in a turnaround from a seven-week high on Monday and were down 0.9% at $4.91-1/2 a bushel.

Supporting beans was China buying a lot of US beans, even with the Trade War and talk that Chine was buying even more!

Soybean stocks came in at 913 million bushel.

Chinese firms purchased up to 600,000 tonnes of USA soybeans on Monday as part of a tariff-free quota allotted to importers to buy up to 2 million tonnes this week. "The dollar remains in a strong trend around two-year highs, which is a burden for USA exports".

The corn and soybean stocks in this report could be some of the biggest on record. In its Quarterly Grain Shares Report, the USDA pegged the US corn provide at 2.11 billion bushels.

Corn stocks were 2.114 billion bushels, the USDA said, below projections for 2.428 billion and down 1% from a year ago.

The USDA said the US winter wheat crop was 22 percent seeded, up from 8 percent the previous week but behind the five-year average of 24 percent.

USDA positioned wheat shares at 2.38 billion bushels vs. the average commerce estimate at 2.318 billion.

"We were surprised that USDA didn't make an adjustment in USA corn production for 2018 because stocks came in much below expectations", said Terry Reilly, senior analyst for Futures International in Chicago.

The United States still has ample supplies in storage, traders said.

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