Big Crop Report Released Today
Today the USDA released their World Supply & Demand estimates as well as their Crop Production estimates.
In summary (from Ag Resource), the USDA January Final Crop and December Stocks report was considered bullish for corn, neutral for soybeans, while being slightly bearish for old crop wheat and slightly bullish for new crop.
While it was bullish for corn, analysts don’t expect the jumps to stick around long due to the abundance of corn. Another spike may happen early next week, but after that, analysts are saying corn could drop into the $3 range by harvest!
Corn (Dec. ’14) closed up .17 at $4.5825, despite corn production being a record 13.9 billion bushels (29% above 2012).
Soybean (Nov. ’14) closed down .1 at $10.9975. Production in 2013 totaled 3.29 billion bushels. Its remarkable that ’13 US soybean yield could nearly reach record hieghts amid the poor growing weather that occurred across much of the Central US.
Wheat (July ’14) closed down .1275 at $6.2025. US December 1st wheat stocks were more than wheat traders had expected. The US wheat feeding rate declined sharply from the 1st quarter, where it was likely overstated. However, Dec 1st US wheat stocks are still down from last year and support at $5.50-5.60 should hold.