Home / Markets / Markets Analysis / USDA data seen as bearish for corn, soybean markets

USDA data seen as bearish for corn, soybean markets

Agriculture.com Staff 04/10/2007 @ 8:08am

CHICAGO, Illinois--USDA, in its monthly Supply/Demand report, released bearish numbers for the corn and soybean markets, market-watchers said. The data is likely only to have a short-term bearish effect.

For soybeans, USDA reduced its crushing estimate 15.0 million bushels. Soybean exports were reduced by 20 million bushels. This resulted in a soybean carryout of 615 million bushels, a 20 million bushel increase.

Roy Huckabay, Linn Group executive vice-president said the trade was looking for a reduction in the soybean carrryout. "Plus, the world soybean carryout was raised 3.5 million tons to 61.02 million. So, those numbers are negative."

Huckabay added, "These numbers will only be traded for half of the day. Look for the market to focus back on weather and delayed planting."

For corn, USDA raised its estimate of U.S. ending corn stocks in April, resulting in a corn carryover at 877 million bushels, above last month's estimate of 826 million, and above the March figure of 752 million.

Also, USDA trimmed feed usage for corn by 125 million to 5.850 billion bushels, as livestock operators are feeding less high priced corn to animals and are substituting other grain like wheat.

For wheat, the Tuesday report is seen as bullish, according to Noel Blue, CBOT floor broker and analyst.

"Because the USDA lowered U.S. wheat ending stocks from 449 million bushels to 422 million, these figures are slightly bullish," Blue said. But, if losses in corn and soy are steep enough, wheat will have a hard time sustaining potential early gains."

CHICAGO, Illinois--USDA, in its monthly Supply/Demand report, released bearish numbers for the corn and soybean markets, market-watchers said. The data is likely only to have a short-term bearish effect.

CancelPost Comment
MORE FROM AGRICULTURE.COM STAFF more +

Farm and ranch risk management resources By: 07/07/2010 @ 9:10am Government resources USDA Risk Management Agency Download free insurance program and…

Major types of crop insurance policies By: 07/07/2010 @ 9:10am Crop insurance for major field crops comes in two types: yield-based coverage that pays an…

Marketing 101 - Are options the right tool… By: 07/07/2010 @ 9:10am "If you are looking for a low risk way to protect yourself against prices moving either higher or…

MEDIA CENTERmore +
This container should display a .swf file. If not, you may need to upgrade your Flash player.
Looking Out for Soybean Cyst Nematodes