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Traders surprised USDA didn’t “find back” corn bushels in Wednesday’s stocks report
The director of producer brokerage for CHS Hedging found a surprise in the corn figures following the Quarterly Grain Stocks report Wednesday.
Kent Beadle says the trade was expecting USDA to make up for some of the record disappearance seen in the first quarter.
The stocks number ended up being 67 million bushels less than the average trade guess, which means essentially bushels were not found back.”
He tells Brownfield with corn supplies at a six-year low and the tightest supply of soybeans in five years, current price levels look sustainable.
“And now we have less acres than what were at the (USDA) Outlook Conference, so essentially today’s numbers imply that we have another full year of very tight balance sheets.”
Beadle says there really aren’t any good reasons for prices to move lower for some time to come.
If you would go back multiple years you would find the USDA “forecasts” are wrong about as often as correct. They are at best manipulators that are playing the American farmer as though they are idiots. When some of their so called experts are book smart but real life idiots that can’t come in out of the rain or can not set a combine to get clean crops what would you expect? The big boys (grain companies and BTF who make big dollars on government subsidies) benefit at the expense of the mid to small time farmers. The sooner they get the speculators out of the markets and make only those who either produce or directly consume the agricultural products the better the farmer will be. The best thing that could happen to the American farmer would to never participate in government programs and never answer surveys they and the big ag companies take. Another option would be to tell the mixed stories so they don’t know what to believe.