Friday’s quarterly stocks report was friendly to corn and soybean prices, and futures closed higher on Friday. After two consecutive bearish reports from USDA, the market was very apprehensive about what would be in the Friday numbers. Doug Werling, with Bower Trading, says the numbers, while not bullish, were friendly, “They revised the 2016 soybean crop lower by 11 million bushels and that changed the 2017 carry in number. The current soybean stocks number at 301 billion bushels was below market expectations of 338.”
Corn stocks were down 60 mb to 2.295 billion bushels due to an increase in the corn feeding number. Werling says it is about time the USDA made this adjustment, “With the livestock industry in full expansion mode, there is a lot of corn feeding going on, so it makes sense that they hiked the corn feeding number by 40 million bushels.”
Werling says, even with harvest pressure building in the market, there is good underlying demand both domestically and internationally. He added that soybean yield numbers that have come into the Bower Trading office have been better than expected, but not better than last year. Thus, they are not putting a lot of bearish pressure on the market.
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