Friendly Numbers in USDA Report Tuesday?
There were some friendly numbers in the USDA Supply Demand Report that was released Tuesday morning at 11:00. Most of the traders attention focuses on the U.S. carryover numbers. However, if you look a the report in more detail (I know there are a lot of numbers) look at the USDA's projected world carryover. There is a substantial drop in the world carryover this marketing year compared to last year!
The USDA projects the world corn carryover for the current marketing year of 97.77 million metric ton. For last year the world carryover was 110.15 million metric ton. There was a large drop in the bean carryover too. This marketing year the carryover is projected at 77.13 million metric ton. Last years world carryover was 91.77 million metric ton.
Even with the USDA's big yield projection in South America and in the United States this marketing year that is a pretty large drop year over year. Could that be why we traded lower after the report Tuesday and then rallied back Wednesday?