Jul 29, 2014
Home| Tools| Blogs| Discussions| Sign UpLogin

Market Breathes Sigh of Relief After USDA Reports

November 11, 2013
By: Nate Birt, Top Producer Deputy Managing Editor google + 
corn harvest 9 08 092   Copy
  

Markets reacted to the first Crop Production and World Agricultural Supply and Demand Estimates in 60 days by breathing a collective sigh of relief, experts tell the U.S. Farm Report Market Roundtable. The USDA updates were released Friday.

"The corn market actually rallied about 3 cents on a ‘Phew, could have been worse,’" says Bill Biedermann, Allendale, Inc. "But we were 4 cents lower for the week. In soybeans, the carryover came out at 170 million bushels, right on the numbers of what the traders expected. Again, a ‘phew’ kind of a reaction, the market rallied 24 cents, and that’s how it ended up for the week."

Wheat ended the week 12 cents lower on a higher-than-expected carryover number.

"Sixty days of material is a long time to go without, especially in a harvest season," says Bryan Doherty, Stewart-Peterson. "Everybody’s scambling to get some sort of edge or feedback from producers, what this crop looks like. It’s probably really what the report didn’t say. It didn’t have any big surprises of consequence. It did tighten up the corn carryout and reduce the acreage, so that was huge. It seems to have given some stability to the markets, so the question now is, is there going to be a lot to punch corn any lower from here, or are we going to start to stabilize?"

Looking beyond the U.S. to global carryover, it’s clear there is an abundance of starch grains, Biedermann says.

"There’s no reason to get bullish," he notes. "I mean, we could bounce, but we can’t rally."
At the same time, Doherty says, the global situation for grain is positive for the end user. It will create a demand market with more stability.

"You can’t have high prices forever," he says.

Click the play button below to watch U.S. Farm Report:
 

See Comments


 
Log In or Sign Up to comment

COMMENTS

No comments have been posted



Name:

Comments:

Receive the latest news, information and commentary customized for you. Sign up to receive Top Producer's eNewsletter today!

 
 
The Home Page of Agriculture
© 2014 Farm Journal, Inc. All Rights Reserved|Web site design and development by AmericanEagle.com|Site Map|Privacy Policy|Terms & Conditions