Chicago grains mixed following USDA report

Chicago corn and wheat on Thursday dropped for a second day while soybeans hike further after U.S. Department of Agriculture (USDA) raised the stock estimates of corn and wheat while cutting that of soybeans. The most active corn contract for December delivery closed at 6. 3825 U.S. dollars per bushel, down 2.5 U.S cents, or 0.4 percent. December wheat lost 8.75 cents, or 1.4 percent, to 6.18 dollars per bushel. November soybean rose 17.5 cents, or 1.4 percent, to 12.57 dollars per bushel. Market analysts said bigger-than-expected reserves continued to weigh on corn and wheat prices on Thursday, while soybean market kept gaining support from the reduction in stock estimate. USDA said in Wednesday's Demand/Supply report that the U.S. stock of corn for marketing year 2011/2012 would hit 866 million bushels, which is much higher than traders' expectation and thus, added heavy pressure on the price. Meanwhile, it also beat most forecasts by lifting the stock estimate of wheat to 837 million bushels. What's more, the world's stock of corn and wheat was also lifted to 123.2 million metric tons and 202.4 million tons respectively. A trader said he expected a bearish response from the USDA report, but the number coming out still surprised most people. Meanwhile, soybeans extended rally as the USDA report was considered bullish. Improved confidence in Europe also helped buoy up the market.