Tough USDA report for soybeans

BLOOMINGTON – Tuesday’s USDA report wasn’t too friendly for prices – especially soybeans.

There were higher production numbers than the trade was expecting and higher ending stocks. Bean ending stocks were up to 320 million while the market was looking for around 300 million. Corn ending stocks were around 1.5 billion which is about 60 or 70 million bushels more than the trade expected.

“They raised the corn yield just a touch and raised the bean yield a little bit as well,” said Aaron Curtis of MIDCO on the CIFN Midday Update.

Wheat had a more friendly reaction to Tuesday’s report with ending stocks coming in about as expected. Wheat was up about 10 cents and tried to pull corn up with it. Beans were under pressure as they have been for some time now with talk of better yields and a lack of Chinese purchases. Brazil and parts of Argentina are seeing better rain potential too.

“It looks like it will be a pretty active planting season for Brazilian farmers over the next few days,” added Curtis.

A record amount of beans is expected in South America for the next harvest. This is something working against the bean market currently. Everything comes down to exports and what China wants to do, according to Curtis.

Curtis hopes producers keep a close eye on next year as the acreage battle could be rather interesting. This could actually offer price support for December 2022 corn at some point.