Corn, Soybeans higher on USDA surprises

Corn, Soybeans higher on USDA surprises

Bigger than expected cuts to old crop carryout boost prices. (Audio)

Traders mostly ignored the bearish parts of today’s USDA reports, instead focusing on larger than expected cuts to old crop corn and soybean carryout. Futures moved higher as a result, with corn making new one-year highs. The agency made no adjustment to its yield forecasts for corn and soybeans adjusting only acres. Wheat data showed more stocks on hand but less than some in the trade feared.

Senior Editor Bryce Knorr offers his insight into overnight trade, listen using the audio tool on this page.

Traders mostly ignored the bearish parts of today’s USDA reports, instead focusing on larger than expected cuts to old crop corn and soybean carryout.

Bryce Knorr first joined Farm Futures Magazine in 1987. In addition to analyzing and writing about the commodity markets, he is a former futures introducing broker and is a registered Commodity Trading Advisor. He conducts Farm Futures exclusive surveys on acreage, production and management issues and is one of the analysts regularly contracted by business wire services before major USDA crop reports. Besides the Morning Call on www.FarmFutures.com he writes weekly reviews for corn, soybeans, and wheat that include selling price targets, charts and seasonal trends. His other weekly reviews on basis, energy, fertilizer and financial markets and feature price forecasts for key crop inputs. A journalist with 38 years of experience, he received the Master Writers Award from the American Agricultural Editors Association.

TAGS: USDA
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