USDA made no changes to U.S. crop estimates, but slightly raised already-massive world production numbers Friday.
Analysts said there were no surprises in the Dec. 9 World Agricultural Supply and Demand Estimates report.
“Overall, it’s a very quiet and neutral report as far as U.S. numbers,” said Rich Nelson, chief strategist of Allendale, in McHenry, Ill. “There are no changes to any of corn, soybeans or wheat in production, yield, or ending stocks.”
Another analyst, DuWayne Bosse, of Bolt Marketing in Britton, S.D., noted that the report’s larger world supplies was a nice reminder that global supplies are huge.
Arlan Suderman, chief commodities economist for Intl FCStone, of Kansas City, Mo., also noted the report’s bearish tone.
“Global stocks are growing in size, emphasizing the need for a weather problem in the Southern Hemisphere if we’re going to generate a sustained rally,” Suderman said.
Going forward, “it’s primarily about South American weather … with some impact from index fund rebalancing in early January,” he observed.
Soybean production for Brazil and Argentina were unchanged from November. Brazil’s corn production increased by 3 MMT to 86.50 MMT.
Despite the report’s bearish nature, “CBOT markets briefly came to life,” after its release, tweeted AgResource Co.
In early afternoon trading, CBOT December corn rose 3 cents at $3.49 2/5, while January soybeans went up 4 3/5 cents at $10.31 3/5. December wheat also was up 4 2/5 cents at $3.89 3/5.