Chicago Grains Reaction To USDA Report

10/06/16 -- Soycomplex: Soybeans closed higher, with the best gains coming in new crop. The USDA were unchanged on potential US, Brazilian and Argentine production in 2016/17, and global imports were also unaltered. What they did alter was a switch in sales from Brazil (down 0.5 MMT to 59.7 MMT) to the US (up 0.4 MMT to 51.7 MMT). US carryout was trimmed 1.2 MMT to just over 7 MMT, and world ending stocks were down the bast part of 2 MMT to 66.3 MMT. Jul 16 Soybeans settled at $11.78 1/4, up 2 1/4 cents; Nov 16 Soybeans settled at $11.62 3/4, up 10 cents; Jul 16 Soybean Meal settled at $414.00, up $0.50; Jul 16 Soybean Oil settled at 32.76, down 27 points.

Corn: The corn market finished the day with losses of around 2-3 cents. The USDA were unchanged on potential US, Brazilian and Argentine production in 2016/17, although global ending stocks were cut nearly 2 MMT to 205.1 MMT. Brazil's export potential in 2016/17 was cut 2 MMT to 23 MMT, Argentina's was unchanged at 22.5 MMT and that of the US raised 0.5 MMT to 49.5 MMT. US 2016/17 carryout was lowered 3.7 MMT to 51 MMT, but still the highest since 2004/05. Jul 16 Corn settled at $4.23, down 3 1/2 cents; Sep 16 Corn settled at $4.27 1/2, down 3 cents.

Wheat: The wheat market closed with double digit losses. The USDA upped the size of this year's world wheat crop by nearly 4 MMT to 730.8 MMT - less than a 0.5% decline on last year's record. The US wheat crop was raised more than 2 MMT to 56.3 MMT and Europe's was increased 1 MMT to 157.5 MMT. Russia also got an increase - up from 63 MMT to 64 MMT. It will be another competitive season on the export front then, with the USDA suggesting that America will account for 24.5 MMT of these, up 0.5 MMT on a month ago, Europe's exports were also raised 0.5 MMT to 35.5 MMT. Jul 16 CBOT Wheat settled at $4.95, down 15 1/4 cents; Jul 16 KCBT Wheat settled at $4.68 1/2, down 15 3/4 cents; Sep 16 MGEX Wheat settled at $5.46 3/4, down 15 3/4 cents.