Wednesday, March 9, 2016

Corn, Wheat Turn Modestly Higher On "Damn With Faint Praise" Dept. Of Agriculture Report

From Reuters:
USDA boosts U.S. soy stocks view; holds corn, wheat steady
The U.S. Agriculture Department on Wednesday raised its outlook for domestic soybean supplies by more than expected as it cut its estimate of the amount that will be crushed due to falling soymeal demand.

The government left its U.S. corn and wheat stocks estimates unchanged in its monthly supply and demand report. Analysts had been expecting a slight increase in domestic grain supplies.

On the global front, the wheat, corn and soybean supply outlooks were lowered, with world soy stocks falling below the range of market forecasts due to an increase in shipments to China. The global corn stocks figure also was below a range of trade estimates.

Soybean, corn and wheat futures all rose for five straight days heading into the report, with analysts attributing most of the gains to short-covering. Ample world supplies had sent corn and soybean prices to multi-month lows and wheat prices to multi-year lows by the start of March.

USDA boosted its U.S. soybean ending stocks view for the 2015/16 crop year by 10 million bushels to 460 million. It cut its outlook for domestic crushings by the same amount and lowered soymeal usage by 200,000 tons.

Analysts had expected U.S. soy end stocks of 452 million bushels, according the average of analysts' estimates given in a Reuters survey.

U.S. corn and wheat stocks were steady at 1.837 billion bushels and 966 million bushels, respectively. Both figures were below the average of analysts' estimates but within the range of market forecasts....MORE
USDA WASDE Home page

Here's corn via FinViz. After trading off three cents before the report it got a bit of a relief rally: