Investing.com - U.S. corn futures rose to the highest level in more than a week on Wednesday, after the U.S. Department of Agriculture lowered its outlook for domestic and global supplies.
On the Chicago Mercantile Exchange, US corn for May delivery jumped 5.03 cents, or 1.29%, to trade at $3.9360 a bushel during U.S. morning hours, after hitting an intraday peak of $3.9363, the most since March 2.
The USDA said on Tuesday that U.S. corn inventories at the end of the 2014-15 season in August will total 1.777 billion bushels, down 50 million bushels from a previous estimate of 1.827 billion bushels.
The downgrade reflected increased feed demand from livestock producers and from overseas buyers. U.S. corn export projections were raised to 1.800 billion bushels from 1.750 billion bushels in February.
The agency also projected global ending corn stockpiles at 185.28 million metric tons for the 2014-15 season, down from a previous forecast of 189.64 million tons.
A day earlier, US corn for May delivery shed 0.6 cents, or 0.19%, to end at $3.8800 as a broadly stronger U.S. dollar weighed.
A stronger dollar reduces the appeal of U.S. crops to overseas buyers and makes commodities less attractive as an alternative investment.
Meanwhile, US soybeans for May delivery ticked up 6.72 cents, or 0.68%, to trade at $9.9113 a bushel. On Tuesday, US soybeans for May delivery dipped 8.6 cents, or 0.88%, to close at $9.8440 a bushel.
The USDA on Tuesday left its forecast for domestic soybean stocks at the end of the 2014-15 season on August 31 unchanged at 385 million bushels, disappointing expectations for a decline to 376 million bushels.
According to the agency, global soybean ending stocks were expected to total 89.5 million tons, up from 89.26 million tons estimated last month.
Elsewhere on the Chicago Board of Trade, US wheat for May delivery rose 4.53 cents, or 0.92%, to trade at $4.9813 a bushel. Prices touched $5.0213 earlier, the highest since March 4.
On Tuesday, prices tacked on 3.2 cents, or 0.66%, to close at $4.9320 after the USDA forecast domestic reserves in the season ending in May at 691 million bushels, down slightly from last month's forecast of 692 million.
The agency left its U.S. wheat export estimate unchanged at 900 million bushels, a five-year low.
According to the USDA, global ending wheat inventories will total 197.71 million tons, compared to a forecast of 197.85 in February.
Corn is the biggest U.S. crop, followed by soybeans, government figures show. Wheat was fourth, behind hay.
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