Market News

Beans drop on USDA numbers

Soybeans were sharply lower on fund and commercial selling. USDA raised the production estimate more than 100 million bushels to 2.971 billion, pegging the average yield at 39.3 bushels per acre. Ending stocks were also up on the month. Soybean meal and oil were lower on the losses in beans. Informa Economics projects 2013 U.S. soybean planted area at 80.1 million acres.

Corn was lower on technical selling and spillover from soybeans. USDA did raise the production and yield estimates slightly but the numbers are all still down sharply on the year. Ending stocks were also up but should stay well below last year’s levels. Dow Jones Newswires, citing trade executives, states Japan bought 500,000 tons of U.S. feed grade corn because of shipping delays on 900,000 tons of previously purchased Brazilian corn. China’s grain output should hit 580 million tons this year, a new record, up 9 million from 2011. According to Informa Economics, 2013 U.S. corn planting could hit 97.7 million acres.

The wheat complex was lower on technical and commercial selling. The Ag Department made a larger than expected increase to ending stocks, up 50 million bushels to 704 million, decreasing the U.S. export projection. Still, USDA did lower the world production estimate, decreasing expectations for Australia. Informa Economics sees 2013 U.S. wheat acreage at 57.1 million tons.