USDA throws a bullish surprise at the corn markets by increasing production by 240 million bushels, but increasing demand more on exports and feed and residual.
Jim McCormick of AgMarket.Net says that resulted in a 34 million bushel drop in new crop ending stocks to 2.097 billion bushels, and the old crop stocks were also lowered by 5 million.
He says this should stop the bleeding in the corn market for now but he says the question will be whether or not USDA’s aggressive demand projects can hold.
Soybean yield was left unchanged and with a 400,000 acre drop in planted acreage production was lowered by 15 million bushels from last month to 4.435 billion. Ending stocks were also lowered by 20 million bushels to 435 million.
Meanwhile, USDA made only slight adjustments to South American production.
Wheat saw the most bearish numbers with a 134 million bushel increase in production due to higher yield and harvested acreage to a total of 2.008 billion bushels. Exports were raised 25 million bushels, but ending stocks were still 98 million bushels higher for new crop at 856 million.
McCormick says this was bearish for wheat and they expect production figures to go up in futures reports.
