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USDA report neutral to negative, analyst says

Agriculture.com Staff 03/10/2006 @ 7:15am

The USDA monthly Crop Production Report on Friday was neutral to negative to the commodity markets, one analyst said.

Don Roose, U.S. Commodities, said the market won't like the soybean exports being cut 10 million bushels, raising ending stocks for 2005-2006 to 565 million bushels.

"This is just so big a number it's worrisome," Roose said.

Inside the USDA world numbers, Brazil and Argentina soybean production figures were left unchanged at 58.5 and 40.5 million acres respectively.

"The surprise in the report is that Argentine corn production was left unchanged at 15.5 million acres, despite some dry weather. This makes you wonder if that same weather did any damage to their soybean crop or not," Roose said.

The traders will now turn their attention to U.S. wheat weather and the harvest progress in South America.

"What are they (South America farmers) going to do with their crop? Will they put it in the world market aggressively or not with all of the problems with a high price Real?" Roose said.

For U.S. corn, USDA raised 2005-2006 corn carryout to 2.35 billion bushels from 2.33 billion in February.

For wheat, USDA left unchanged its 2005-2006 carryout estimate at 542 million bushels from February.

"Just no big surprises with any of these figures. Kind of ho hum," Roose said.

The USDA monthly Crop Production Report on Friday was neutral to negative to the commodity markets, one analyst said.

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