As it tends to be in December, Tuesday’s USDA report was fairly quiet overall, although there were more surprises than most years.
“Corn ending stocks were down to 2.437 billion bushels. USDA added 50 million to the ethanol crush,” explains Merrill Crowley of Crowley Commodities in Watseka.
World corn stocks increased while wheat ending stocks increased by 25 million in the U.S.
“That 25 million came out of wheat exports,” Crowley added.
The world wheat stocks increased to 268.42 million with soybean ending stocks increasing 20 million to 445 million bushels. Crowley believes any kind of tightness in the U.S. could have the soybeans jumping in price. If the weather continues to be dry in Argentina, the market will react.
Tuesday’s trade showed more stabilization with corn and soybean erosion continues on more beneficial Argentina rain in the forecast. Soybean charts are currently not looking happy although that could change with more dryness in Argentina or Brazil.
Crowley cautions that it is still early to rush judgement on any kind of 2018 soybean crop. It will be important to not only keep watching South American weather but also the trade perception of their crop size.
Crowley Commodities can be reached at 815-432-2220.