Bullish report to boost crop futures02/09/2011 - 02/25/2011
Look for old crop corn, soybean and wheat futures to be sharply up today following a monthly USDA supply and demand report that cuts ending stocks of corn in the U.S. to 675 million bushels, down from January’s estimate of 745 million bushels left in the pipeline by the end of next August.
“It’s a bullish scenario,” says Don Roose, an analyst with U.S. Commodities, Inc. in West Des Moines, Iowa. “What we did on this report is increase food use 20 million (bushels) and ethanol use 50 million.”
His firm is calling corn futures to be up 15 cents to the 30-cent limit today, with soybeans and wheat both up 10 to 15 cents.