USDA releases mostly bearish stocks data
CHICAGO, Illinois (Agriculture.com)--The USDA released mostly bearish grain stocks data Thursday. As a result, the corn market could take the biggest hit.
Early calls for corn are 6-8 cents lower, soybeans firm, and wheat to follow corn.
For corn, the USDA estimates stocks at 1.708 billion bushels vs. the trade expectation of 1.407 billion bushels.
For soybeans, the USDA placed stocks at 151 million bushels equal to the average trade estimate of 151 million bushels.
For wheat, USDA pegged the stocks at 2.224 billion bushels vs. the average trade estimate of 2.44 billion bushels.
"The USDA found back the 300 million bushels of corn stocks lost on the June report, when the lows were posted," one CME Group floor trader says. "So, look for a bearish response today. However, a weak dollar and higher energy prices are supportive."
The floor trader adds, "While we were expecting a higher stocks number than the average guess, the 300 million increase is rather large. We will now have to wait for more yield data on production report, a week from Friday. But, this number will cool our jets."