Bullish Momentum Continues for Corn
Apr 01, 2014
Monday’s barrage of USDA data gave the corn market a lift and the bullish move continued in the night trade. May corn was up 4 cents a bushel in the overnight session and May soybeans climbed 13 cents a bushel. Wheat fell 6 cents a bushel.
For corn, both stocks and acres came in lower than expected from USDA’s reports on Monday. The biggest surprise was 2014 corn acres at 91.7 million, one million lower than analyst expectations going into the report. Stocks of corn as of March 1 were pegged at 7,006 MB vs 7,099 expected. Overnight, the Taiwan Sugar Corp purchased 20,000 MT of U.S.-origin corn.
In soybeans, USDA estimated March 1 soybean stocks at 992 MB vs 989 expected. While not overly bullish, front-month May futures shot higher as traders now focus on the fact that US export commitments have nearly outstripped available supplies for the old-crop marketing year. For new-crop, USDA estimated 2014 soybean acres near 81.5 million vs 81.1 expected. Overnight, the Taiwan Sugar Corp purchased 15,000 MT of U.S.-origin soybeans.
For wheat, USDA estimated US March 1 wheat stocks near 1,056 MB vs 1,042 expected. They also estimated US 2014 wheat acres near 55.8 million vs 56.3 expected. The 2 numbers almost cancel each other out leaving wheat to trade weather. Japan's Ministry of Agriculture skipped buying food quality wheat via a regular tender this week due to a custom of not conducting tenders in the first week of the new fiscal year starting April as well as in the first week of a calendar year.