USDA releases bullish corn data
The USDA released bullish corn data Wednesday. Essentially, the government expects the U.S. to have less corn on-hand than previous thought on Sept. 1, 2013.
After trading higher off of the report, the corn and soybean markets turned negative, at mid-session. Traders still see an end-f-day rally.
In its April Supply/Demand Report, the USDA estimates 2012-13 corn carryout at 757 million bushels, compared to the average analysts estimate of 824 million bushels and the USDA's March estimate of 632 million.
For soybeans, the 2012-13 carryout is pegged at 125 million bushels, vs. the average analysts estimate of 137 million bushels and the USDA's previous estimate of 125 million bushels.
The 2012-13 U.S. wheat carryout is estimated at 731 million bushels vs. the average analyst estimates of 731 million bushels and the USDA's March estimate of 716 million bushels.
Jack Scoville, PRICE Futures Group vice-president, says the report is fairly bullish.
"I feel like the reports are not at all bearish against expectations and are even a little friendly. Especially the corn. What a reaction to a not so super shock report. We are reacting bearish right now, but I would not be surprised if we rally by the end of the day. USDA is still looking at an overall tight scenario, when considering all the markets," he says.