Corn futures set an eight-week high after the USDA report also showed tighter-than-expected inventories of the yellow grain. Thirty-six percent of the crop reached maturity, 18 days behind a year ago and 2 weeks behind average. They have struggled due to low prices, the US-China trade war and historic springtime flooding, which caused unprecedented delays in corn plantings.
Traders hope the sales lead to Chinese firms buying more US soybeans over the longer term, Hoops said, after China slashed imports during the ongoing U.S.
Chinese firms bought up to 600,000 tonnes of USA soybeans on Monday as part of a tariff-free quota allotted to the importers to buy up to 2 million tonnes this week, two sources with knowledge of the deals said.
"We're seeing China business every day", said Ted Seifried, chief market strategist for Zaner Ag Hedge in Chicago. Average trade estimates are for around.98 billion bushels of USA soybean stocks, 2.3 billion bushels of U.S. wheat, and 2.4 billion bushels of corn. December wheat was up 3 cents, or 0.62 percent, to close at 4.8725 dollars per bushel. Individually, the USDA pegged the 2019/20 U.S. All Wheat manufacturing at 1.962 billion bushels vs. the standard commerce estimate of 1.968 billion bushels.
INTL FCStone on Tuesday raised its estimate of the average US 2019 corn yield to 169.3 bushels per acre, from 168.4 in its previous monthly report released on September 4.
Private traders on Friday reported to the U.S. Department of Agriculture sales of 126,000 metric tons of soybeans to China for delivery in the 2019/2020 marketing year.
CBOT agricultural futures closed mixed on Monday, with soybean futures rising over 1 percent on optimism over U.S. Wheat stocks were slightly above expectations at 2.385 billion bushels.
"We were surprised that USDA didn't make an adjustment in USA corn production for 2018 because stocks came in much below expectations", said Terry Reilly, senior analyst for Futures International in Chicago.
"Unfortunately it looks like the Black Sea region and Europe will continue to dominate such tenders with US wheat not seen with much of a chance", one trader said.