History reveals path through US grain stocks data minefield
Brace yourselves.Crop data from the US Department of Agriculture have a habit of moving markets, being taken as market standards, for grains and oilseeds especially.But the USDA's quarterly stocks briefings have a particular knack for sparking volatility.Witness the last report, in March, when the department's revelation that US stocks of soybeans, wheat and, in particular, corn were higher than investors had expected sent prices tumbling.Corn futures tumbled 12.6% in two sessions in Chicago, on a front contract basis.The previous stocks report, released in July sent prices soaring, after inventories were seen falling well short of market expectations.Friday's data will "going to set the tempo for a while, and influence how we are going to transition from a period of tight supplies to one where we think there will be ample supplies," Jerry Gidel, chief feed grains analyst at Rice Dairy, said.'We hate this report'"We hate this report," Rich Nelson, director of strategy at Allendale, the Chicago broker, told Agrimoney.com"You put out your numbers. But it is very difficult to know if they will turn out anything like what the USDA says. Futures prices may well go limit up or limit down."...MORE
Corn $5.38; Wheat; $6.73; Beans $12.74.
