The USDA lowered old crop ending stocks quite a bit and new crop stocks were below many estimates. Soybeans were sharply higher after supply and demand numbers.
Soybeans were sharply higher on commercial and technical buying after a surprising set of supply and demand numbers. The USDA lowered old crop ending stocks quite a bit and new crop stocks were below many estimates. Those were both on larger than anticipated demand projections. The USDA also reduced production outlooks for South America. However, there is a very long way to go this growing season, not to mention through the end of next marketing year, and commodities have been volatile. Soybean meal was sharply higher with July limit up on commercial demand. Soybean oil followed beans and meal. China bought 40,000 tons of U.S. soybean oil and unknown purchased 20,000 tons, with both sales for delivery this marketing year.
The USDA has reduced its outlook for this year’s South American corn and soybean crops after weather issues during development and harvest.
Brazil’s soybean crop estimate was trimmed 1 million tons to 99 million and Argentina’s crop was lowered 2.5 million tons to 56.5 million. 2016/17 corn production for Brazil is pegged at 82 million tons with Argentina at 34 million. South Africa’s expected to recover from 6.5 million tons this year to 13 million next year.
The corn production guess for Brazil is now 81 million tons, 3 million less than in April, and Argentina is seen at 27 million tons, a decrease of 1 million. Next year, Brazil is projected at 103 million tons with Argentina at 57 million.
China’s old crop soybean import estimate was left at 83 million tons and new crop imports are projected at 87 million.
Not all the crops are in the ground yet - read the US Crop Progess Report numbers here: http://www.farms.com/news/usda-crop-progress-report-corn-64-planted-107229.aspx
Read the Full Reports
World Agricultural Supply and Demand Estimates (WASDE) http://www.farms.com/news/full-coverage-usda-reports-released-107283.aspx
Crop Production Report http://usda.mannlib.cornell.edu/usda/current/CropProd/CropProd-05-10-2016.pdf
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