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USDA data seen as bearish for corn, wheat

Agriculture.com Staff 12/11/2008 @ 6:15am

CHICAGO, Illinois (Agriculture Online)--USDA, in its December Supply/Demand report, released bearish data Thursday for the corn and wheat markets, neutral soybeans.

Early calls for corn 7-10 cents lower, wheat 5-6 cents lower, and soybeans steady. However, the weekly U.S. export sales report this morning indicate positive sales, giving support to the grain markets.

"The report is bearish for corn due to new crop ending stocks and world ending stocks," says Matt Pierce, Futures International LLC.

"Export sales were good for beans and corn and outside markets are supportive. So, I do not expect any major downside move due to current price levels and technical stance," Pierce says.

USDA estimated U.S. 2008-09 corn carryout at 1.474 billion bushels, above the average analysts estimate of 1.232 billion bushels, and above the USDA's November estimate of 1.124 billion. The USDA corn estimate is considered bearish for today's market, CBOT floor traders say.

U.S. 2008-09 soybean carryout was estimated at 205 million bushels, unchanged from its November estimate, and slightly higher than the average analysts estimate of 200 million bushels.

For wheat, the USDA estimated the U.S. 2008-09 carryout at 623 million bushels, above the average analysts estimate of 596 million bushels, and above its November estimate of 603 million bushels.

Meanwhile, the USDA estimated 2008-09 U.S. wheat carryover at 147.5 million bushels, slightly higher than its November estimate of 145.3. For corn, USDA estimated 2009-09 carryover at 123.8 million bushels, higher than 110.1 estimated in November.

CHICAGO, Illinois (Agriculture Online)--USDA, in its December Supply/Demand report, released bearish data Thursday for the corn and wheat markets, neutral soybeans.

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