Another Disappointing Week for Corn and Beans
On Friday the USDA released the January and February Supply Demand Report plus the quarterly grain stocks as of December 1, 2018. There were a lot of numbers to digest all at one time because of the Federal Government shutdown. The yield was dropped and the grain stocks for corn were about 600 million bushel below last year. However, those bullish numbers were offset by a number of bearish assumptions by the USDA. The USDA cut feed usage, food seed and industrial usage and ethanol use. That was very disappointing!
It was a similar theme in the soybean market. The USDA dropped the soybean yield for last year and cut the U.S. carryover to 910 million bushel. Brazil's bean crop was cut by 5 Million Metric Ton and Argentina's was cut .5 Million Metric Ton. Plus the world carryover was cut by 8.6 Million Metric Ton. However with a U.S. carryover of 910 million bushel and that is what the market seemed to focus on. So, where do we go from here? Are we left with hoping for more bean exports to China and more hot and dry weather in South America?