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USDA releases bullish corn data

01/11/2013 @ 10:16am

The USDA released bullish corn, soybean and wheat data Friday, as less stocks were found to be on-hand, as of December 1.

As a result, the CME Group corn market jumped 23 cents in three seconds, at 11:00am CT. At 11:20am, the March corn futures traded 16 cents higher at $7.15 per bushel. The January soybean futures traded 7 cents higher at $14.25, but deferred contracts were lower. The March wheat futures are trading 22 cents higher at $7.67.. 

GRAIN STOCKS

In its annual Crop Production and Grain Stocks Reports, the USDA pegged the U.S. corn stocks, as of Dec. 1 at 8.03 billion bushels vs. the average trade estimate of 8.2 billion bushels. Soybean stocks, as of Dec. 1, is estimated at 1.966 billion bushels vs. the average trade estimate of 1.984 billion bushels. For wheat stocks, the USDA pegged the U.S. supply, as of Dec. 1, is pegged at 1.66 billion bushels vs. the average trade estimate of 1.674 billion.


CROP PRODUCTION

The USDA estimated the U.S. 2012 corn output at 10.78 billion bushels vs. the average trade estimate of 10.626 billion bushels and the government's December estimate of 10.725 billion.

For soybeans, the U.S. farmers produced a crop of 3.010 billion bushels vs. the average trade estimate of 2.999 billion bushels and the USDA's previous estimate of 2.971 billion bushels.

In its report, the USDA estimated the average U.S. corn yield at 123.4 bushels per acre vs. the average trade estimate of 122.4 bu./acre and the USDA's December estimate of 122.3 bu./acre.

The USDA estimated the 2012 U.S. soybean yield at 39.6 bu./acre vs. the average trade estimate of 39.6 bu./acre and the government's previous estimate of 39.3 bu./acre.

TRADE REACTION

Alan Brugler, President of Brugler Marketing & Management LLC, says the report is bullish but buying reaction has been muted.

"USDA found fewer bushels on Dec 1 at 8.03 billion. Production was actually raised a little due to yield at 123.4, but implied feed use is larger than the trade had expected, in order to get that Dec 1 number," Brugler says.  

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