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USDA data seen friendly for corn and soybeans

Agriculture.com Staff 11/09/2007 @ 6:45am

The USDA released slighly bullish numbers for the corn and soybean markets, negative for wheat, analysts say.

The CBOT opening calls for corn are 1-3 cents higher, soybeans 2-4 cents higher and wheat 2-4 cents lower, according to Don Roose, U.S. Commodities.

Al Kluis, Kluis Commodities says the corn and soybean markets should react positively this morning.

"Overall, I know we are at pretty high price levels, but this is a positive report," Kluis says.

On Friday, USDA estimated the 2007 U.S. corn crop at 13.16 billion bushels, slightly below its October estimate of 13.31 billion. The average corn yield is estimated at 153 bushels per acre.

"This is one bushel per acre less than what the trade expected," Kluis says.

In addition, USDA lowered the 2007/2008 U.S. corn ending stocks 100 million bushels to 1.897 billion.

For soybeans, the USDA pegged the 2007 crop at 2.59 billion bushels, equal to its October report. For soybeans, the USDA lowered the 2007/2008 ending stocks figure by 1.0 million bushels to 2.10 billion.

"These lower soybean numbers shows this smaller crop is going to get smaller as we go," Kluis says.

USDA raised the U.S. wheat ending stocks by 22.0 million from its previous estimate. Kluis sees this as negative for the market.

Don Roose, U.S. Commodities says with the USDA lowering U.S. corn feed usage by 50.0 million bushels, is more proof this year's smaller than expected crops will get smaller.

"Plus, there are many in the trade that feel the number being used for corn going to ethanol is 100 million bushels to high," Roose says. But fo now, because the corn crop was lowered, it's going to reverse this going into the final estimate which will come in the following months."

Roose adds, "From here on out, watch the demand for corn to get a measure on market direction."

The USDA released slighly bullish numbers for the corn and soybean markets, negative for wheat, analysts say.

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