USDA report reaction, early call
Today's USDA report is being called bearish corn & wheat and neutral soybeans.
Although all wheat production was seen lower than anticipated at 2.461 billion bushels, all winter wheat production was higher than expected at 1.864 billion. The reason for the overall reduction lies with spring wheat which was pegged at 506m bushels vs expectations of 546m. As winter wheat is being harvested now and spring wheat has only just been planted there is time yet for the spring crop to improve.
Soybean carryout came in pretty much bang on with expectations.
Corn carryover was higher than expected for both 2007/08 and 2008/09.
The report might be bearish/neutrel, however strong crude oil again today looks like underpinning the market. Crude is nudging $145 at the moment, at $144.76/barrel.
It's only been out half an hour and already it's history! Tomorrow's headlines (again): Outside markets support.
The early calls are beans up 10-15c, corn up 5-7c and wheat mixed.
Although all wheat production was seen lower than anticipated at 2.461 billion bushels, all winter wheat production was higher than expected at 1.864 billion. The reason for the overall reduction lies with spring wheat which was pegged at 506m bushels vs expectations of 546m. As winter wheat is being harvested now and spring wheat has only just been planted there is time yet for the spring crop to improve.
Soybean carryout came in pretty much bang on with expectations.
Corn carryover was higher than expected for both 2007/08 and 2008/09.
The report might be bearish/neutrel, however strong crude oil again today looks like underpinning the market. Crude is nudging $145 at the moment, at $144.76/barrel.
It's only been out half an hour and already it's history! Tomorrow's headlines (again): Outside markets support.
The early calls are beans up 10-15c, corn up 5-7c and wheat mixed.