Grain markets moved higher upon the release of Thursday?s WASDE Report from USDA.
Allendale commodity broker Greg McBride breaks down the main highlights from Thursday?s big report.
?A big surprise with a 4.9 bushel per acre decrease in yield on corn,? said McBride. ?That brought your production down to 14.75 billion bushels. That brings new crop ending stocks to 1.242 billion. That was a decrease of about 190 million bushels from last month and also about 50-55 million bushels lower than the average guess. It was a nice bullish surprise. We got ourselves back up to that 5.90/5.95 area for corn, which looks fantastic. At this point, we get excited about whether or not these yields hold or if they continue to slide a little bit as we get the combines rolling over the next month or two.?
USDA pegged corn yield at 174.6 bushels per acre and soybeans at 50 BPA. There was no change to new-crop soybean ending stocks at 155 million bushels. Wheat ending stocks fell to 627 million bushels.
?This is an exciting report,? said McBride. ?Everybody should be happy with this report. It is an opportunity. We?re just getting another opportunity to sell profitable corn and beans at this point. Probably not anything that we would expect to see stay crazy with prices like $7 corn or $15 beans, but this might be the best prices we see before we get into harvest.?
According to StoneX Group, world soybean stocks rose to 96.15 million metric tons. USDA lowered world wheat production by 15.5 million metric tons in the report.
The team at Allendale can be reached by calling 800-262-7538, or you can visit allendale-inc.com.
