At 10.706 billion bushels, the USDA’s October forecast of the
U.S. corn crop was about 100 million bushels larger than the average trade guess
and about equal to the September forecast. The October soybean forecast, at
2.86 billion bushels was about 90 million bushels larger than the average trade
guess and 126 million larger than the September forecast. Prices of both
commodities increased immediately after the forecasts were released.
The positive response to what appeared to be neutral to
negative production forecasts suggest that the market had priced in the risk of
even larger production forecasts. In addition the USDA forecast year ending
stocks of both commodities to be near pipeline levels, and smaller than expected
in the case of corn. In the case of soybeans, the projection of marketing year
consumption was increased by 150 million bushels. Some interpreted the increase
as a reflection of stronger demand than had been previously forecast. <Read More>
No comments:
Post a Comment