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U.S. Corn, Soybean Stocks Drop, USDA Says

Corn, soybean markets close higher Friday.

DES MOINES, Iowa — As U.S. farmers bring in better-than-expected corn and soybean crops, the piles of crops in storage get smaller, according to the USDA Friday.

In its Quarterly Grain Stocks Report, the USDA pegged Sept. 1 corn stocks at 2.29 billion bushels vs. the trade’s average estimate of 2.35 billion bushels. This corn stocks number is the highest Sept. 1 amount in 30 years.

For soybeans, on-farm and off-farm stocks were pegged at 301 million bushels, compared with the average trade estimate of 338 million bushels.

The USDA sees the U.S. wheat stocks, as of Sept. 1, at  2.25 billion bushels vs. the average trade estimate of 2.20 billion bushels.

As a result of the bullish data, corn and soybean prices are moving higher.

At the close, the Dec. corn futures finished 2 3/4¢ higher at $3.55 1/4, while March futures closed 2 1/4¢ higher at $3.67 3/4.

Nov. soybean futures settled 8 3/4¢ higher at $9.68 1/4, Jan. soybean futures finished 8 1/4¢ higher $9.78.

September wheat futures closed 6 3/4¢ lower at $4.48 1/4.

Dec. soy meal futures closed $4.30 per short ton higher at $315.80. Dec. soy oil futures ended even at 32.82¢ per pound. 

In the outside markets, the Brent crude oil market is $0.09 lower, the U.S. dollar is lower, and the Dow Jones Industrials are 17 points lower.

Trade Response

Jack Scoville, The PRICE Futures Group’s Senior Market Analyst, says the USDA data is curious.

“Interesting production report for wheat, winter wheat actually saw a little less production but spring wet up,” Scoville says. That’s exactly the opposite of the trade ideas.”

Corn and beans quarterly stocks numbers are plain bullish, especially the beans, Scoville says.  

“There had been talk that bean production was underestimated and that stocks would be higher than general expectations, but this is clearly not the case.  The market is doing a real good job of reflecting the bullish and bearish in the reports.  Now back to harvest and yield reports,” Scoville says.

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