The U.S. Department of Agriculture?s March Crop Production and World Agricultural Supply and Demand Estimates (WASDE) reports were mostly neutral, according to an Allendale broker.
The WASDE Report showed U.S. corn stocks at 1.502 billion bushels, unchanged on the month. Trade was expecting 1.471 billion bushels. USDA also indicated U.S. soybean stocks are at 120 million bushels, which was also unchanged on the month. Greg McBride with Allendale says there was mostly no-change on the U.S. side of the report.
?We did not see a change in corn, beans, or wheat,? McBride said. ?They were looking for a 25 million bushel decrease in corn, 3 million bushel decrease in beans, and a 3 million bushel increase on wheat. They gave us none of that. We did see that as the market absorbed these numbers, we were basically trading at pre-report levels, which was down a couple of cents in corn, up a couple of cents in beans, and up about 5-6 cents in wheat.?
Perhaps the biggest surprise on the report was the increase in soybean production for Brazil, says McBride.
?They increased it from 133 to 134 million metric tons,? McBride said. ?Given all of the issues we?ve heard about with their harvest and how slow it?s going, that is a surprise that they are not starting to see some loss or anything like that. There was a small change to Argentina?s production. They lowered it by a half million tons. That was surprising because of how dry things have been down there for their corn and bean production.?
?These numbers out of South America were a little bit off,? McBride continued, ?You would expect to see those come down a little bit more, but I?m going to call this report pretty neutral.?
Tuesday?s report also showed world corn stocks at 287.67 million metric tons, up from 286.53 million last month. World soybean stocks came in at 83.74 million metric tons, an increase from 83.36 million last month.
The team at Allendale can be reached by calling 800-262-7538, or you can visit allendale-inc.com.
