Wheat futures set for highest finish in nearly two weeks as USDA lowers U.S. ending stocks estimate

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Wheat futures climbed on Thursday, setting prices up for their highest finish in nearly two weeks after a monthly report from the U.S. Department of Agriculture revealed a lower estimate for domestic 2020/2021 ending stocks. The USDA cut its outlook for wheat ending stocks by 15 million bushels to 862 million bushels, which would be down 16% from the previous marketing year. The USDA, meanwhile, estimated U.S. soybean ending stocks at 175 million bushels, which would be the lowest since the 2013/2014 marketing year. U.S. soybean stocks are “uncomfortably low, and much of the trade expects a further tightening of global soybean supplies barring an unexpected improvement in Brazil’s soya crop outlook, which is not expected at this time,” said Sal Gilbertie, president and chief investment officer at Teucrium Trading. March wheat rose by 10 1/4 cents, or 1.8%, to $5.93 1/2 a bushel in Chicago. A settlement around this level would be the highest for the most-active contract since Nov. 27, according to FactSet data. January soybeans fell by 1 1/2 cents, or 0.1%, to $11.57 a bushel. March corn traded at $4.22 1/2 a bushel, down 1 1/4 cents, or 0.3%.


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