USDA throws curveball with report

Friday’s September USDA report kind of threw us a curveball, adding in another two million harvested acres to the U.S. corn crop – more than washing out the cut we had to yields.

“Is that yield going to hold or is that just the start of the decline going in to the end of harvest?” notes Karl Setzer of Consus Ag, a guest Friday on the CIFN Midday Update.

USDA is taking corn down to a 186.6 yield now. They didn’t alter demand much with ending stocks still holding in there well for this year and next.

“Even with the added acres and the trimming of the yield, we are holding our carryout and more importantly our stocks to use is still holding in there pretty good,” added Setzer.

Traders just simply aren’t willing to sell this market off, according to Setzer.

With Friday’s report, we did not see a lot of changes to the soybean balance sheets, but we did see a little cut to the new crop exports. We are still sitting at a 6 percent stocks to use ratio on new crop soybeans.

“That is being warranted by our soybean futures following the report – not willing to back off at all.”