SINGAPORE, July 13 (Reuters) - Chicago corn futures lost more ground on Thursday, trading near a mark hit last session that is the lowest since early 2021 on pressure from a forecast of higher output in the United States.
Wheat prices were also weighed down by a larger-than-expected U.S. production figure from the U.S. Department of Agriculture (USDA) and soybeans eased.
FUNDAMENTALS
* The most-active corn contract on the Chicago Board of Trade (CBOT) lost 0.3% to $4.82-1/2 a bushel, as of 0010 GMT, after dropping to lowest since January 2021 at $4.81-3/4 a bushel on Wednesday.
* Wheat fell almost 1% to $6.26-3/4 a bushel and soybeans lost 0.1% to $13.26-3/4 a bushel.
* U.S. government said on Wednesday that farmers will harvest massive crops of both corn and soybeans this year, boosting the supply base despite drought conditions stressing plants during early stages of development.
* The agency put the U.S. 2023 corn crop at 15.320 billion bushels, up from 15.265 billion last month and above an average of analyst expectations for 15.234 billion.
* The USDA cut its U.S. corn yield estimate to 177.5 bushels per acre (bpa), down 4 bpa from last month, reflecting the impact of dry conditions in June, but the lower yield was offset by a larger plantings estimate.
* It also raised its forecast of U.S. 2023/24 corn ending stocks by 5 million bushels to 2.262 billion bushels, in line with trade expectations and up significantly from the 1.402 billion bushels expected at the end of 2022/23.
* For soybeans, the USDA lowered its 2023 soybean harvest projection to 4.300 billion bushels, down from 4.510 billion previously but still toward the high end of trade expectations. The agency left its soy yield forecast unchanged at 52.0 bushels per acre.
* Significantly, the government's forecast of U.S. 2023/24 soybean ending stocks, at 300 million bushels, came in above even the highest in a range of pre-report estimates.
* The USDA also surprised analysts by raising its estimate of the U.S. 2023 wheat harvest to 1.739 billion bushels, up from 1.665 billion in June and above a range of trade expectations.
* The Rosario grains exchange cut its forecast for Argentina's ongoing wheat harvest by about 4%, compared to a prior crop estimate, according to a report issued on Wednesday that blamed the revision on a lack of rainfall in some farming areas.
* Commodity funds were net sellers of CBOT corn, soybean, wheat, soymeal and soyoil futures contracts on Wednesday, traders said.
MARKET NEWS
* Wall Street stocks advanced on Wednesday and the dollar and Treasury yields fell after new U.S. inflation data showed a slowdown in the seemingly relentless rise of consumer prices.
DATA/EVENTS (GMT) 0300 China Exports, Imports YY June 0300 China Trade Balance June 0600 UK GDP Est 3M/3M May 0600 UK GDP Estimate MM, YY May 0600 UK Manufacturing Output MM May 0645 France CPI (EU Norm) Final MM, YY June 1230 US Initial Jobless Clm Weekly 1230 US PPI Machine Manuf'ing June (Reporting by Naveen Thukral; Editing by Rashmi Aich)
