USDA Data Favors Corn, Soybean Prices10/03/2016
The U.S. corn and soybean stocks did fall slightly below the trade expectations, while wheat stocks climb to 30-year highs, USDA estimates.
As a result, the farm markets Friday reacted negatively initially. However, corn and soybean markets helped all grains close higher.
At the close, the December corn futures settled 7½¢ higher at $3.36¾, while March futures finished 7½¢ higher at $3.46½ per bushel.
November soybean futures closed 3¾¢ higher at $9.54, while January soybean futures settled 3¢ higher at $9.59¼.
December wheat futures ended 3¢ higher at $4.02.
December soy meal futures closed $0.90 per short ton higher at $299.60. December soy oil futures are 0.10¢ higher at 33.44¢ per pound.
In the outside markets, the Brent crude oil market is $0.41 per barrel higher, the U.S. dollar is lower, and the Dow Jones Industrials are 196 points higher.
Jack Scoville, The PRICE Futures Group’s senior market analyst, says that the report is a little bullish for beans and corn as the stocks came in on the low side of expectations.
“For the wheat market, it’s kind of a mixed bag with production a little less than expected but the stocks a little higher than expected,” Scoville says.
Overall, kind of a yawner, but not a reason to sell, Scoville says. “Selling coming from production bears, but the fact is the farmer is not selling, and the market needs beans and corn. Market moved a little lower after the report for some reason, now a little higher as it probably should be,” Scoville says.
Jason Ward, director of grains and energy, Northstar Commodity Investment, says the report is no big shocker.
“I’d call it neutral corn/soybeans, bearish to the wheat.”