The USDA forecast the collapse of prices for corn, soy and wheat
After the publication of the August report USD futures on corn, soybeans and wheat fell sharply. Traders were expecting a more neutral report no significant changes to balances of production and carryover stocks.
the September winter wheat futures in Chicago fell by 3.8% to 4.42 $/bushel, which is the minimum of the last two months.
the December spring wheat futures in Minneapolis, which has been a driver of price growth in July declined by 3.4% to 7.20 ½ $/bushel.
- at the End of trading in the Chicago December futures for corn fell by 4.1% to 3.7 $/bushel – the lowest level for the past 10 months.
- soybean Futures for delivery in November fell by 3.4% to 9.39 $/bushel – the lowest price since late June.
After the July drought in most parts of the U.S. Midwest, the market expected a reduction yield forecast by 2.5 bushels/acre. However, experts from the USDA have reduced it only by 1.2 bushels/acre to 169,5 bushels/acre.
Despite traders ' expectations about the reduction of soybean yield to 47.5 bushels/acre, the experts, the USDA increased its preliminary estimate of the yield by 1.4 bushels/acre to 49.4 bushels/acre.
World production of soybeans will increase from 345 to 347,36 mln t, and ending stocks – to of 97.78 93,5 million tons thanks to the increase in gross collection in the U.S. to record 119,2 million tons.
Estimate of world corn production has remained almost unchanged at the level of 1,033 billion tons, while for the U.S. production forecast is reduced from 362 to 359,5 million tons.
Traders believe that yesterday's USDA report today will really affect the price of soybeans and corn, as the market takes time to analyze your balances. Yesterday's drop was a reaction to US data, and today will be known the reaction of the world stock exchanges.