[Listen] Gordy USDA December Supply Demand Report
This morning at 11:00 the USDA released the December Supply Demand Report. Looking at the corn numbers the United States and world numbers were left pretty much unchanged. The USDA dropped the bean numbers slightly and expects bean prices to increase by about 15 cents a bushel. Corn was trading about 2 cents higher and beans 15 cents a bushel but faded to lower after the report.
Looking at the average trade guess for the numbers traders were expecting a slight reduction in production and carryovers. When that did not occur corn and beans sold off and actually went negative. This reminds me of that old saying in the grain markets. The bears can survive for a long time without bearish news but the bulls need to be fed every day. Maybe traders thought the bull was going to get fed today (bullish news) compliments of the USDA. When that did not happen we went lower!
On the positive side after the break buyers showed up under the market and prices stabilized. That is a major change from the last few years so maybe there is still hope? Click on the link above and listen to Gordy talk about the December USDA supply Demand Report.