USDA Reports
USDA’s January reports last week sent some supply shocks to the market. The agency penciled in a 1.6 million-acre-drop to U.S. unharvested corn acres, but the bigger concern may be the trend of dropping demand.
A few surprises came out of USDA reports, including a 1.6 million acre drop in U.S. corn acres. As a result, the U.S. crop balance sheets continued to tighten and corn and soybean prices shot up on Thursday.
This article discusses the highlights of this week’s USDA report that provides more information on the US grain supply.
Brian Splitt, AgMarket.Net, says: USDA cut export demand for corn, ethanol and soybeans. That’s going to be the theme — a lower crop but also demand.
Ahead of the report, analysts expected a drop in corn yield, but not soybean yield — and the market responded quickly, says Bill Biedermann, AgMarket.Net co-founder.
Grains are mixed reacting to the USDA Grain Stocks Report, Black Sea news and outside markets. Livestock mixed with cattle breaking to new lows for the move. Michelle Rook talks with Matt Bennett of AgMarket.Net.
Another surprise -- corn acres climbed rather than fell versus March intentions.
USDA’s World Agricultural Supply and Demand Estimates for January reflect higher ending stocks for both corn and soybeans.
Despite a soybean carryover number lower than market expectations in today’s World Agricultural Supply and Demand Estimate (WASDE) from USDA, market reaction was muted with beans only up a quarter cent on the day.
As corn and soybean prices continue to trade in a narrow range, it’s easy to ignore the markets—don’t!