Investing.com - U.S. grain futures were mixed on Tuesday, with wheat prices extending gains from the previous session after the U.S. Department of Agriculture forecast lower-than-expected domestic supplies this year.
On the Chicago Mercantile Exchange, wheat for March delivery rose 0.4% to trade at USD5.8738 a bushel during U.S. morning hours. The March wheat contract rallied 1.26% on Monday to settle at USD5.8460 a bushel.
The USDA said that U.S. wheat stockpiles at the end of the 2013-14 marketing year on May 31 will total 558 million bushels, down from 608 million projected last month and compared to market expectations for 602 million bushels.
The agency raised its forecast for U.S. export shipments to 1.175 billion bushels in the current marketing season, up from the 1.125 billion estimated last month
Elsewhere on the CBOT, corn futures for March delivery traded at USD4.4238 a bushel, little changed on the day.
CBOT March corn rallied to USD4.4900 a bushel on Monday, the most since October 8, before turning lower to settle at USD4.4300 a bushel, down 0.28%.
The USDA cut its outlook for corn stockpiles at the end of the 2013-14 season in August to 1.481 billion bushels from 1.631 billion forecast last month.
While the figure was initially seen as bullish for prices, traders instead focused on that fact that the number will nearly double levels seen last year.
Meanwhile, soybeans futures for March delivery traded at USD13.2063 a bushel, down 0.35%.
The March soy contract jumped to USD13.4000 a bushel on Monday, the highest since December 23, before erasing gains to settle 0.45% lower at USD13.2540 a bushel.
The USDA said soybean production in Brazil will total 90 million metric tons in the current market season, up from 89 million tons forecast last month.
The South American nation will produce more soybeans than the U.S. for the first time on record, according to the USDA.
The agency kept its forecast for U.S. soybean stockpiles on August 31 unchanged at 150 million bushels, compared to expectations for a decline to 143 million bushels.
Corn is the biggest U.S. crop, followed by soybeans, government figures show. Wheat was fourth, behind hay.
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