Initial reaction to the USDA report/Early call
The figures are a mixed bunch to my mind, the most striking feature being rather bearish on corn.
2008 Corn production at 12.288 billion bushels is well above the average trade estimate of 11.986 billion. Yields were increased to 155 bu/acre, again above what the trade was expecting.
The soya numbers are a little bullish and the wheat numbers neutral.
Early calls are corn futures to open 10-15 cents per bushel lower, soybeans are seen starting 5-7 cents higher, and wheat is expected to open 2-4 cents higher.
The question will now be will corn drag the rest of the complex lower with it?
2008 Corn production at 12.288 billion bushels is well above the average trade estimate of 11.986 billion. Yields were increased to 155 bu/acre, again above what the trade was expecting.
The soya numbers are a little bullish and the wheat numbers neutral.
Early calls are corn futures to open 10-15 cents per bushel lower, soybeans are seen starting 5-7 cents higher, and wheat is expected to open 2-4 cents higher.
The question will now be will corn drag the rest of the complex lower with it?