Grain and livestock futures were mixed on Thursday.
Chip Nellinger, Blue Reef Agri-Marketing, says corn and soybeans ended higher with lower ending stocks in the WASDE.
USDA cut corn ending stocks by 75 million bu. to 1.465 billion bu. with a 100 million bu. increase in exports and 25 million bu. lower feed and residual.
He says that likely keeps new crop corn carryout under 2.0 billion bu. in the May WASDE and offsets the 95.3 million corn acres.
USDA lowered U.S. soybean ending stocks just 5 million bushels to 375 million.
The agency once again left South American production numbers static, despite Conab raising Brazil corn production Thursday morning nearly 2 million metric tons and soybeans by a half million.
However, they increased last year’s Brazilian soybean production by 1.5 million metric tons, which raised world ending stocks to 122.5 MMT.
The market was up as much as $.16 on the nearby contract as Nelliger thinks the market was seeing corrective buying with relief on the tariff delays.
He adds that there was also some optimism about trade with administration officials saying there were 20 deals that could soon be announced and there was even some better rhetoric regarding China.
USDA’s increase in U.S. wheat ending stocks by 27 million bushels was slightly bearish and came from a 25 million bushel decrease in exports and 10 million bushel increase in imports for a second straight month.
World wheat stocks were raised around a half million tons to 260.7 MMT.
“There was just nothing bullish about the report for wheat,” he says.
Cattle futures fell on profit taking after the rally yesterday and in lock step with the stock market.
Nelliger thinks the funds are liquidating cattle positions on any strength in the market and are vulnerable to additional selling
