UPDATE 2-USDA cuts U.S. corn, wheat ending stocks on export demand
(Adds analyst comments, updates prices)
By Ros Krasny
WASHINGTON Feb 10 (Reuters) - Projected U.S. corn ending stocks for 2013/14 continue to tighten on strong export demand, the U.S. Agricultural Department said on Monday, a bullish jolt that helped Chicago corn futures reach their highest levels in four months.
U.S. wheat carryout was also lower on the month on rising exports. Projected U.S. soybean ending stocks were unchanged from January but Brazil's crop and projected exports were raised, giving the report a bearish edge.
Chicago corn futures rose about 1 percent on the news before hitting a wall of resistance near $4.50 per bushel, while wheat futures jumped about 1.5 percent and soybean futures slipped by about 0.5 percent.
"Demand is starting to shine through," Mike Zuzolo, Global Commodity Analytics, said of the corn and wheat data.
The USDA forecast 1.481 billion bushels of corn will remain on hand when the new crop is ready for harvest by late summer, well above the drought-affected level of 2012/13 but down from 1.631 billion projected in January and a second consecutive substantial monthly reduction.
"The once-feared carryout of over 2 billion bushel carryout is now under 1.5 billion bushels," said Don Roose, analyst with U.S. Commodities.
Grain traders and analysts had forecast corn stocks at an average of 1.619 billion bushels. Continuación...