GRAINS-Corn jumps on positioning, new signals of feed demand

viernes 30 de septiembre de 2016 15:55 GYT

* USDA reports lower-than-expected quarterly corn stocks

* Inventory indicates livestock producers used corn for feed

* Some analysts had expected them to feed more wheat (Adds closing prices, analyst comments)

By Tom Polansek

CHICAGO, Sept 30 (Reuters) - U.S. corn futures jumped on Friday on quarter-end positioning and government crop data that signaled livestock producers had not cut back on feeding the grain in favor of wheat, as some traders had expected.

Prices rose after the U.S. Department of Agriculture, in a quarterly crop report, said 1.738 billion bushels of corn were in storage as of Sept. 1. That was fewer than analysts on average had expected, indicating that livestock producers had fed more corn to their animals than anticipated, said Brian Hoops, president of brokerage Midwest Market Solutions.

End-of-quarter short covering was noted as helping the rally, after the USDA issued its data, ED&F Man Capital Markets analyst Charlie Sernatinger said in a note to clients.

The agency further fueled ideas that livestock producers had stuck with corn as feed, instead of switching to wheat, by reporting that 2.527 billion bushels of wheat were in storage at the start of the month. That topped analysts' expectations.

In a separate report released at the same time, it estimated that U.S. all-wheat production was lower than analysts had expected at 2.31 billion bushels.   Continuación...