Market Report: USDA Report Tuesday Not Bearish!

Corn was trading 5-6 cents lower Tuesday going into the USDA Supply Demand Report at 11. The corn numbers were a little friendly and corn closed 3-5 cents higher. Ending stocks for the current marketing year were down 7 million bushels from the June report at 1.701 billion bushels. New crop carryover came in at 2.081 billion bushels. The average trade guess was at 2.2 billion bushels, with some traders thinking it could be as high as 2.5 billion bushels. Now it all comes down to the weather and demand.

The bean supply demand report numbers were termed neutral. Because they were not bearish we probably saw some short covering as beans closed 25-32 cents higher. The USDA estimated old crop bean carryover at 350 million bushels, which was down 20 million bushels from the June report. New crop carryover was raised 30 million bushels to 290 million bushels. Looking at the stocks to usage ratio, a carryover of 290 million bushels is getting a little tight. The longer range forecasts are still calling for above-normal temperatures, which seems to have the traders' attention.