USDA Quarterly Stocks report was constructive for corn and soybeans, but showed a bigger carryout than expected for wheat. Corn stocks were at 1.738 billion bushel, slightly below the trade estimate. Doug Werling with Bower Trading says this was actually a little friendly due to the increase in feed demand.
Soybean production was revised by 3 million bushels to 3.926 billion bushel, less than feared. Carryover was at 197 million bushels, just slightly lower than the estimate. Werling says this was also constructive for the market.
Quarterly stocks for wheat were at 2.527 billion bushels due to a shift from feeding wheat over to corn. Werling says at the low prices for wheat the market’s job is to discourage wheat production globally and stimulate demand. He says the U.S. is competitive with Europe on price so that is starting to happen.
All wheat production was lowered slightly to 2.31 billion bushels, with higher durum and hard red winter wheat production offset by lower spring wheat production.
