Few changes in report

Friday’s USDA Dec. 9 report did not indicate many changes but some of the changes were fairly significant with possible longer-term implications.

USDA cut corn exports by 75 million bushels.

“I think we probably have more cuts coming there. The sales remain very sluggish at this point,” said Arlan Suderman, chief commodities economist for StoneX Group, Inc.

This still does not leave us in a big surplus situation. The balance sheets for soybeans and wheat have really not changed with nothing of great significance on the domestic end. Typically, the report this time of year does not impact markets much.

“We did see USDA cut another three million metric tons of production off of Argentina’s wheat crop,” Suderman added.

Some feel that could go lower. Drought continues to intensify in Argentina, meaning significant cuts are possible to corn and soybean production in the next couple of months. Brazil appears to be on track for a bumper crop which offsets the losses in Argentina.

Suderman was the guest on Friday’s CIFN Midday Update, discussing the USDA report.