Despite a bearish USDA report corn prices and soybeans grow
the USDA Report dated June 30, is considered one of the most important of the year and shows the total acreage and the stocks at the beginning of the season. Therefore it exercises a decisive influence on market trends.
the Unexpected decline in the area under wheat and the deterioration of the yield due to prolonged drought gave a strong impetus to the wheat market and supported the neighboring corn market.
In Chicago within hours of the publication of the report of the September futures for corn rose by 1.4%, and soybeans by 2.8%. Traders had expected due to rainy weather which did not allow time to sow the corn acreage will decrease, but will increase the acreage of soybeans. In the current season under soybeans designated 89.5 mln acres vs last year to 83.4 million acres.
compared to the March forecast in a new report the acreage
soybeans increased by 31 thousand acres to 89,513 million acres the
- corn rose by 890 thousand acres to the 90,886 million acres
- wheat decreased by 402 thousand acres to 46,657 million acres.
While traders were expecting an increase of areas under corn on 983 thousand acres, reducing the total soybean and wheat on 237 and 413 thousand acres, respectively.
Additional bearish factor was the increase in carryover stocks, which ignores the market.
As of 01.06.17 in comparison with last year the grain stocks in the U.S. rose
- corn on 503 million bushels to 5,225 billion bushels (with a market forecast of +102 million bushels),
- soy by 93 million bushels to 963 billion bushels (20 million bushels),
- wheat at 203 million bushels to 1,184 billion bushels (+47 million bushels).
the next Two weeks will be very interesting to prices for corn and soybeans because wheat harvest will decrease grain prices. Besides meteorologists predict precipitation in the corn belt of the United States.