Corn drops from 7-1/2 year top on higher-than-expected supply

SINGAPORE: Chicago corn futures fell 0.8% on Wednesday after the US Department of Agriculture pegged its end of season inventory estimates above market expectations.

Soybeans slid for the first time in three sessions, while wheat fell almost 1%.

"The USDA report was bearish for corn prices," said one Singapore-based grains trader. "The market was expecting a bigger reduction in corn stocks."

The most-active corn contract on the Chicago Board Of Trade was down 0.8% at $5.52 a bushel by 0332 GMT, after climbing to its highest level since June 2013 in the last session.

Soybeans fell 0.3% to $13.97-3/4 a bushel, after firming around 1% in the previous session when prices hit a Jan 19 high of $14.09-1/2 a bushel. Wheat lost 0.9% at $6.43-1/2 a bushel, after closing down 1% on Tuesday.

The USDA only minimally trimmed its US end-of-season stocks outlook and raised its export forecast by less than many traders had anticipated following record-large sales to China.

The agency projected US corn ending stocks for the 2020/21 marketing year at 1.502 billion bushels and soybean ending stocks at 120 million bushels, both down from January.

Analysts polled by Reuters had expected corn ending stocks of 1.392 billion and soy ending stocks of 123 million.

Commodity funds were net buyers of CBOT soybean, soymeal and soyoil futures contracts on Tuesday and net sellers of corn and wheat, traders said.