USDA Report Reaction
As ever, there's a lot of chaff to be sifted through, and as so frequently happens it may be that the report is history after the first half hours trading of the day.
The bottom line is that there wasn't a lot in the report that we didn't really know already.
The US will harvest a record soybean crop in 2009, despite the weather problems, TICK, we knew that. South American production will also likely be a record in 2010 with Brazil producing 63 MMT, TICK, and Argentina 53 MMT, TICK.
The USDA will stick it's head in the sand a little while longer yet with regards to Chinese corn production, they've already dropped it 10 MMT, you don't expect them to do the same again surely? TICK.
The USDA cocked up back in the summer with a rather low Russian wheat estimate, which they've gradually been clawing back ever since, hoping nobody would notice. TICK. Production in Kazakhstan and Ukraine is also higher than they have been saying. TICK. US export potential has been overstated, TICK.
Sorted.
The bottom line is that there wasn't a lot in the report that we didn't really know already.
The US will harvest a record soybean crop in 2009, despite the weather problems, TICK, we knew that. South American production will also likely be a record in 2010 with Brazil producing 63 MMT, TICK, and Argentina 53 MMT, TICK.
The USDA will stick it's head in the sand a little while longer yet with regards to Chinese corn production, they've already dropped it 10 MMT, you don't expect them to do the same again surely? TICK.
The USDA cocked up back in the summer with a rather low Russian wheat estimate, which they've gradually been clawing back ever since, hoping nobody would notice. TICK. Production in Kazakhstan and Ukraine is also higher than they have been saying. TICK. US export potential has been overstated, TICK.
Sorted.
