Corn rallies most since July on lower US plantings outlook

Chicago Board of Trade corn futures posted their biggest one-day rally since July after the U.S. Department of Agriculture on Thursday reported grain stocks and intended plantings below trade estimates.

The data delivered a bullish jolt that also buoyed wheat prices, analysts said.

"It shocked the market," said Don Roose, president of U.S. Commodities. "Corn was positive all the way around."

Intended plantings of U.S. corn for the 2024 harvest came in at 90.036 million acres, the USDA said, below the average analyst estimate of 91.776 million acres. Quarterly corn stocks as of March 1 were 8.347 billion bushels, below analysts' expectations for 8.427 billion.

The most-active CBOT corn contract ZC1! soared 15-1/4 cents, settling at $4.42 a bushel. Benchmark May futures (CK24) reached their highest price since Feb. 9 at $4.48 and finished about 3% higher for the month, after declining the previous four months.

CBOT wheat ZW1! gained 12-3/4 cents to close at $5.60-1/4 a bushel, and soybeans ZS1! lost 1 cent to $11.91-1/2 a bushel.

U.S. soybean plantings and quarterly stocks were roughly in line with analyst estimates, with plantings seen rising from 2023. Farmers are switching acres to soybeans after harvesting a record corn crop last year.

The USDA reported total U.S. wheat plantings and March 1 wheat stocks slightly above trade estimates.

"Corn is the driver here, and corn and wheat are going to be neck and neck," Fessler said.

A strong dollar and ample grain and soy supplies in South America and the Black Sea will keep a lid on the markets, analysts said.

U.S. wheat export sales for the week ending March 21 beat trade estimates for the 2023-24 marketing year, while corn export sales were on the higher end of analyst estimates and soybean sales missed expectations.

Markets close for Good Friday, and traders hurried to adjust positions ahead of the three-day weekend.