CHICAGO, July 10 (Xinhua) -- CBOT agricultural futures declined in the past week with corn the downside price leader, Chicago-based research company AgResource noted.

But as the expanding COVID-19 variants are producing worry in the recovery in emerging nations, AgResource maintains a bullish outlook.

CBOT corn futures ended sharply lower as last weekend's weather forecast trended wetter across Iowa and the Eastern Midwest. The coverage of rain in Iowa this weekend will be closely watched next week. Too much rain has fallen across pockets of the Eastern Midwest, as Illinois, Indiana and Ohio will not be wanting for moisture throughout pollination. The graphic shows that corn has found a new plateau amid tightening U.S. exporter stocks. The market stays focused on supply exclusively for a few more weeks.

AgResource's bullish thesis is centered on demand and tightening U.S. stocks, not U.S. yield. Brazil's year-over-year production decline, along with rising Chinese and non-Chinese import needs, will funnel incredible demand to the United States in the next crop year. Ethanol production is above pre-COVID-19 levels. Whatever final yield is, the U.S. new crop will be absorbed rapidly by the end users, resulting in another year of U.S. corn stocks contraction.

AgResource views current prices as highly attractive for end users, advising coverage for another 12 months on any fresh weakness.

U.S. wheat futures ended weaker as supply pressure continues in U.S. and European winter wheat markets and amid long liquidation in U.S. spring wheat futures.

Supply pressure will ease beginning in mid-July as the U.S. winter harvest surpasses 60 percent complete. Focus thereafter will shift to the pace of U.S. feed demand, while importers this week have returned to the marketplace in bulk. Nearly every major importer has bought or will be seeking supply by late month. Global wheat trade will be a new record in 2021-2022, and like recent years exporter production will fail to meet consumption. This will be compounded as combined U.S. and Canadian wheat production is lowered 6-9 million tons from the U.S. Department of Agriculture's (USDA) current forecast.

The wheat market lacks excitement, but the long-term bull market, which began in 2018, will be extended another year, AgResource said.

Soybean futures fell sharply on the prospect for rainfall in U.S. Midwest and improved crop condition ratings for the week. Yet, USDA surprised the trade with a 1-percent decline in crop condition ratings to 59-percent on Tuesday, the fourth lowest on record for the week. The decline in U.S. ratings and building loss of the Canadian canola crop due to drought sent soyoil values to sharp gains on Friday. This offered key support to U.S. soybean prices on the future prospect of expanding U.S. soybean crush rates.

New contract highs in November soybeans are forecast with any hint of adverse Central U.S. weather and a yield drop below 49 bushels per acre. Enditem

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