Following today’s Supply & Demand Report from USDA, AgriTalk After the Bell host Chip Flory and news anchor Davis Michaelsen broke down the reports, adding perspective to some of the changes. Surprisingly, USDA cut estimated old-crop soybean carryover by 5 million bushels, the result of an increase in estimated soybean crush, while partially offsetting that increase with a cut to residual use. Bean carryover came in about 25 million bushels below trade expectations, supporting bean prices. Also adding support was the bigger-than-expected cut to the Argentine bean crop estimate.
But, the highlight for Flory was the cut to estimated global corn ending stocks. “We’re consuming more corn in the 2017-18 marketing year than was produced in 2017-18. That’s the kind of trends we need to turn attitudes in the corn market… and it’s happening,” said Flory.