Chicago corn and wheat extend bounce after USDA data

Chicago corn and wheat futures rose on Wednesday, extending a rebound triggered by the U.S. Department of Agriculture's acreage and stocks estimates.

Soybeans were near flat as an increased USDA estimate of U.S. planting and weaker oil prices curbed the oilseed market.

In closely followed data on Tuesday, the USDA pegged U.S. wheat plantings and quarterly stocks below trade expectations. The agency pegged corn acreage above average expectations but its corn stocks estimate was lower than anticipated on average.

The data helped corn prices recover from contract lows and wheat to come off a two-week low.

"CBOT grains ended the month on a positive note, supported by the friendly USDA report," CM Navigator analyst Donatas Jankauskas said. "That positive momentum in CBOT is continuing this morning at the start of the new month."

The most-active wheat contract on the Chicago Board of Trade CBOT:ZW1! rose 0.42% to $5.91-3/4 a bushel at 1052 GMT, while CBOT corn CBOT:ZC1! added 0.46% to $4.38 a bushel.

The USDA's sharp cut to its wheat area estimate was a particular surprise for the market and shifted attention back towards poor prospects for this year's drought-affected U.S. harvest.

"However, a bearish tone remains, with strong production forecasts across Russia and Australia adding to an already well-supplied market," Sean Hickey, an analyst at Bendigo Bank Agribusiness, said of wheat.

CBOT soybeans CBOT:ZS1! inched up 0.02% to $11.44 a bushel.

After tracking strength in corn on Tuesday, soybeans faced pressure from the USDA's stocks and plantings estimates, as well as a Canadian forecast on Tuesday projecting a sharp rise in canola planting there.

Hot weather across the U.S. Midwest this week was being monitored, though widespread showers and easing heat into next week were expected to limit stress on corn and soybean crops.