USDA Reports
Three potentially market-moving events will test the resilience of the spring grain rally, offering a clearer direction for the new crop year’s market fundamentals.
Following a major stakeholder meeting, USDA is boosting survey sample sizes and moving data-focused offices out of D.C. to rebuild farmer trust and improve the accuracy of its agricultural reports.
Chip Nellinger with Blue Reef Agri-Marketing says, “USDA did rearrange some of the soybean demand estimates with crush raised 35 million bu. while exports were lowered the same amount.”
In Texas, for example, more than half of the winter wheat is rated poor to very poor. USDA Meteorologist Brad Rippey says the state recently endured its fourth-driest stretch from September to February in the last 131 years.
DuWayne Bosse with Bolt Marketing says with the reports out of the way the grain market has gone back to trading Iran war headlines and following the crude oil market
Arlan Suderman with StoneX some of the support in the grains Tuesday came from money flow but lower wheat and soybean acreage than anticipated also added to the buying interest.
Corn falls to 95.3M acres (-3%) while soybeans rise to 84.7M (+4%). Wheat hits a record low 43.8M acres (-3%) and cotton climbs to 9.64M (+4%).
U.S. ending stocks remain unchanged month-over-month while USDA adjusts global production estimates.