Beans up, Corn & Wheat Down; March Option Expiration
Feb 24, 2012
This morning's trade is dominated by the USDA projected crop numbers for the 2012/13 crop year and option expiration positiong in the front month March grain contracts.
Soybeans are the one bright spot this morning and are higher based on fears that South America may still cut production estimates and projected greater demand causing lower ending stocks in the coming year.
Corn futures are slightly lower after the USDA projected total corn plantings at 94 million acres and the yield at 164 bushels per acre. This puts total production at 14.27 billion bushels. This is right in line with the baseline projection. If the US does produce 14.27 billion bushels, it will be about 2 billion more bushels than this past year and will weight on new crop corn prices.
Wheat futures are lower today on a projected increase in ending stocks are current projections. The USDA projects ending stock for the coming crop year to be 957 million bushels, up 113 mil. bu. over the current year. The estimates are based on expectations of higher wheat acreage and baseline yields, both which would be higher than last year.
Live and Feeder cattle futures are recovering from yesterdays drop to continue the bullish trend.
Justin Lewis, M.B.A.