With how dry it has been in the wheat growing regions of the U.S., many analysts were expecting to see a cut to the new crop wheat production numbers in the May World Agricultural Supply and Demand Estimates (WASDE) report. This month’s report did show exactly that, and the wheat prices shot up over forty cents to end the day on Tuesday, bringing the rest of the grain complex upwards with them. Allendale commodity broker Greg McBride said this positive move was even able to overcome what was actually a slightly bearish report for the corn.
The bearish corn news was punctuated by an increase to the projections for the corn crops in both Brazil and Argentina.
On the soybean side of the report, McBride said the first look at the new crop ending stocks was friendlier than anticipated for the market prices.
Drought stress led to significant cuts on the new crop wheat ending stocks, and that massive surge in the market prices was able to override any news that was impacting the corn and soybean markets.
The team at Allendale can be reached by calling 800-262-7538, or you can visit allendale-inc.com.
