USDA Report First Take
Dec 11, 2012
PRESS THE PLAY BUTTON TO HEAR THE MORNING GRAIN CALL
USDA Ending Stocks:
- Corn unchanged at 647 million bushels
- Soybeans down 10 million bushels to 130 million bushels
- Wheat up 50 million bushels to 754 million bushels
This morning corn and soybeans are trading on either side of unchanged after the USDA WASDE report gave little new fundamentals to traders. Wheat is down 16 cents at the moment after US ending stocks were raised 50 million bushels as a result of a 50 million bushel revision lower to export sales. Notable for the wheat market was a .95 million metric ton revision higher to Russian ending stocks.
The USDA left the corn balance sheet unchanged, keeping all production and demand figures from the November report. This only raises for bar for the demand scenario moving forward, with the USDA leaving exports and ethanol crush unchanged in the face of weak export sales and historically low ethanol crush margins. We will be keeping a close eye on the weekly Export Sales Report and EIA Energy Stocks report for direction on this corn market.
Soybean ending stocks were revised 10 million bushels lower, meeting trade expectations. The USDA left export sales unchanged which came as a surprise to many after the furious pace of US export sales to date. Pushing ending stocks lower was crush projections which were raised 10 million bushels. South American soybean production estimates were left unchanged for both Argentina and Brazil in this morning's report.
THERE IS A SIGNIFICANT RISK OF LOSS IN TRADING FUTURES AND OPTIONS. FUTURES TRADING IS NOT APPROPRIATE FOR ALL INVESTORS. PLEASE READ OUR RISK DISCLOSURE.