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USDA data seen friendly to grain markets

Agriculture.com Staff 02/10/2009 @ 6:21am

CHICAGO, Illinois (Agriculture Online)--The USDA released friendly numbers in its February Supply/Demand report Tuesday.

For world numbers, the USDA estimated Argentine soybean production at 43.8 million metric tons, compared to its January estimate at 49.0 million metric tons. USDA pegged Brazil soy production at 57.0 million metric tons, compared to its January estimate of 59.0 million metric tons.

"The USDA didn't just step the world numbers down, they really pulled them down," one CBOT trader says. "This is a friendly report for corn and soybeans."

Matt Pierce, Futures International LLC, says overall the report is friendly across the board.

"Supportive for corn in that we saw no change to ending stocks versus expectations of a 100 million increase. Argentine corn down to 13.5 million metric tons is also supportive. S. Korea buying more corn overnight adding to positive momentum," Pierce says.

Pierce adds, "The report is slightly supportive for beans with a 15 million reduction in ending stocks now at 210 million. Argntine beans at 43.8 million metric tons is a good reduction and in line with world estimates. Brazil beans at 57.0 million metric tons, as expected. Nothing exciting for wheat with no change to U.S. sheet. Argentine wheat at 8.4 million metric tons is supportive. China wheat remaining at 113 is a bit of a surprise but nothing shocking due to timing of their crop." Overall supportive beans, corn and wheat.

USDA estimated U.S. 2008-09 soybean ending stocks at 210 million bushels, compared to its January estimate of 225 million metric tons and the average estimate at 203 million bushels,

For corn, USDA estimated U.S. 2008-09 ending stocks at 1.790 billion bushels, equal to its estimate in January, lower than the average analysts' estimate for U.S. 2008-09 corn ending stocks at 1.838 billion bushels.

For wheat, the USDA pegged U.S. 2008-09 wheat ending stocks at 655 million bushels, above the average analysts' estimate at 649 million bushels, equal to its January estimate of 655 million.

CHICAGO, Illinois (Agriculture Online)--The USDA released friendly numbers in its February Supply/Demand report Tuesday.

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