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Corn, wheat lower following USDA numbers

 

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Soybeans were higher on fund and commercial buying. USDA sees this year’s planted area at a record 84.6 million acres, 1% above 2014. Quarterly stocks were up 34% on the year, but did indicate strong quarter to quarter demand. The numbers may even signal a reduction in ending stocks in April. Still, the overall tone of soybeans is now supply bearish. Soybean meal was higher and bean oil was lower on the adjustment of product spreads.

Corn was lower on fund and commercial selling. Corn acreage is pegged at 89.2 million acres, 2% lower than a year ago, and the third straight year with a decline. Quarterly stocks for corn also indicated good quarterly demand, but were larger than what analysts’ expected and up 11% from last year. There’ still a lot up in the air regarding planting, but corn is looking at a supply bearish situation. Ethanol futures were lower.

The wheat complex was lower on fund and commercial selling. Planted area for all types of wheat was 3% below a year ago and stocks were up 6%, with slower demand. Wheat does have domestic weather concerns, especially dry conditions for the hard red winter crop, but the overall fundamentals remain bearish. According to DTN, India bought 70,000 to 80,000 tons of wheat from Australia.

 

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