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USDA data seen as bullish corn

MOINES, Iowa ( U.S. grain stocks continue to
tighten, with the corn and soybean inventories the most concerning,
according to the USDA.

In its
Quarterly Grain Stocks and Small Grains Summary Reports Friday, the USDA
lowered the amount of corn and soybeans on-hand as of Sept. 1. 

after the report's release at 7:30am CT, the CME Group's electronic corn
trade jumped 21 cents, wheat 18 cents and soybeans up 2 cents.

corn, the USDA pegged stocks at 988 million bushels, compared to the
average trade estimate of 1.126 billion bushels and the USDA's June 1
estimate of 3.149 billion  bushels.

sees U.S. soybean inventory at 169 million bushels vs. the average trade
estimate of 132 million bushels and 215 million bushels at this same
time a year ago.

For wheat
stocks, the USDA pegged U.S. inventory, as of Sept. 1, at 2.10 billion
bushels, compared to the average trade analysts estimate of 2.281
billion bushels.


Ward, Northstar Commodity Investment Co. analyst says the report is
surprisingly bearish to the soybeans at 169 million bushels. 

"Corn was bullish and may stop the bleeding to the downside. The report is friendly for wheat," Ward says.

adds, "Thankfully, they (USDA) found more soybeans, because China is
buying more than we have to sell. So, this is just some more that we can

Overall, this report should put in some sort of bottom on the corn, Ward says. 

Sal Gilbertie, Teucrium Trading, Inc. says demand for crops seems to be the highlight of today’s report. 

soybean numbers are most significant, disappearance last quarter
indicates healthy demand at the end of the 2012 crop year, even with
historically record high prices," Gilbertie says. 

stocks, at September 1, were slightly higher than the trade expected,
but demand is clearly unabated and the soybean balance sheet is very
tight, he says. 

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