Corn and soybean futures traded higher just before the USDA Supply and Demand report and, while the report did not cut corn and soybean yield projections as had been expected, continued higher after the release. “The report was not all that bullish, but it does set us for higher prices for 2015 and 2016,” said Bob Utterback, with Utterback Marketing, on the HAT Mid-Day podcast. Arlan Suderman, with Waterstreet Solutions, said the market is responding to the tightening of supply indicated in the report, “Traders are looking ahead to how tight balance sheets will be once USDA does cut yields.”
Soybean prices were up 9 cents after the report release on the tight old-crop stocks. “That demonstrates that demand remains quite strong, opening up the imagination to what could happen once USDA does cut yields as expected,” said Suderman. Wheat futures were up 3 cents on the surprisingly low winter wheat crop which offset gains in spring wheat. KC wheat is mixed, while MN wheat is down 4 cents on a larger crop.