CORN:
The USDA’s Crop Production and Supply/Demand report was considered mostly neutral this morning with corn called 5-10 cents higher on the open. The USDA pegged corn production at 12.020 billion bushels which was about 55 million bushels below trade expectations and compares with 12.033 billion posted in the October 28th update. Yield was revised down to 158.3 bushels/acre from 153.9 last but the trade expected a higher number. Ending stocks were pegged at 1.124 billion bushels from 1.088 billion last month but this was still about 65 million bushels below trade expectations. Exports were revised lower by 50 million bushels and domestic usage left unchanged. World numbers were somewhat negative as world usage was revised lower by about 2.5 million tonnes and beginning stocks were revised higher. As a result, ending stocks are now pegged at 110.12 million tonnes from 105.57 million last month and 126.47 million last year.
WHEAT:
The USDA’s Supply/Demand revisions this morning were considered neutral to slightly negative in wheat with the market called unchanged to 7 cents higher. US ending stocks were raised to 603 million bushels from 601 last month. Traders were expecting a drop of about 15 million bushels. Yield and production were left unchanged as expected and usage numbers were also unchanged with the exception of ‘seed’ which was lowered by 2 million. On the world S&D report, Argentine production was lowered 1.0 million tonnes to 11.00 million, Australia was lowered 1.5 million tonnes to 20.0 million. This was about as expected. However, the EU wheat crop was raised to 150.6 million from 147.17 on the October report which left world production about 2.2 million tonnes higher than last month. World trade was raised to 121.83 million tonnes from 120.83 million last month.
SOY COMPLEX:
The USDA’s Crop Production and Supply/Demand Reports were considered neutral for soybeans with the market called 20-25 higher. The USDA pegged soybean production at 2.921 billion bushels which was about as expected and is down 17 million bushels from the last update. Yield was revised down to 39.3 bushels per acre from 39.5 last month. Traders expected a drop of about 10 million bushels in ending stocks but the USDA left ending stocks unchanged from last month at 205 million bushels. Crush was revised lower by 15 million bushels. World numbers were somewhat supportive with Brazil production down to 60 million tonnes from 62.5 million posted in October. As a result, ending stocks are now pegged at 54.06 million tonnes from 54.34 million last month and 53.04 million last year.
