Grains see a corrective day and WASDE report positioning with wheat sharply higher, corn and soybeans were lower.
Matt Bennett, AgMarket.Net, says after nine days lower the wheat market was oversold and some traders wanted to even up positions going into the USDA reports.
Meanwhile, after a higher day Monday row crops set back slightly on profit taking and with strong row crop ratings, especially soybeans with a 72% good to excellent condition score.
Bennett isn’t expecting much out of the June report as USDA rarely makes production adjustments on this report for new crop corn and soybeans. The big fireworks will come from the acreage report at the end of June. He doesn’t think USDA will tweak much on the demand side of the balance sheets either for row crops.
Wheat yield and production is expected to rise and so new crop ending stocks are already projected to be above a year ago up to 778 million bushels.
Global numbers will be watched with Bennett anticipating USDA to shave South American production, but they will still say far above Conab figures.
Wheat production out of the Black Sea region, but in particular Russia, could be the one exception he says with the frost and drought possibly lowering the crop.
Cattle also saw profit taking after running into chart resistance and corrected ahead of the Fed announcement.
