USDA DATA TENDS TO BE BEARISH FOR FARM MARKETS
On Tuesday 11/04/2017, the U.S soybeans and wheat ending stocks were larger than the trade expected, with South America’s crop getting bigger by the day.
According to the April Supply/ Demand Report, the USDA left the U.S. corn stocks unchanged at $2.32 billion.Based on this report, the CME Group’s farm futures prices closed mostly weaker but off their daily lows.
At the close of business, May corn futures settled 1/2 ¢ lower at $3.66 1/2, while December futures finished 1/4¢ lower ar $3.90 1/2. May soybean futures finished 2 1/2¢ lower at $9.39 1/4. May wheat futures closed 4 1/2¢ higher at $4.33 1/4.
May soy meal futures settled $0.20 per short ton higher at $309.30. May soy oil futures closed $0.28 lower at 31.07¢ per pound.
In the outside markets, the Brent crude oil market is $0.21 per barrel higher, the U.S. dollar is lower, and the Dow Jones Industrials are 45 points lower.
Jack Scoville, The PRICE Futures Group’s senior market analyst, says there is nothing in the U.S. data that is really out of line with expectations.
“Corn actually is a little below guesses and beans dead on. Wheat a little higher. But the world data is big, especially for beans, and I think that is driving the markets lower,” Scoville says.
He adds, “The beans and corn increased in both Argentina and Brazil are the tickets to the price action here, and the big beans are the big thing. World ending stocks up a lot, reflecting slightly underestimated production in the U.S. and the big jumps and Brazil and Argentina and perhaps a reduction in demand maybe from China.”
Jason Roose, U.S. Commodities, says that this report means more price pressure for ag commodities.
“No real big surprises on today’s monthly report. What this report continues to do is confirm that there is no shortage of grain. Larger South America corn and bean crop increasing the world ending stocks for the grains adding pressure to the prices,” Roose says.