IARN — The grain markets all closed higher on WASDE Report day on Monday.
Allendale commodity broker Greg McBride tells IARN that for the July estimates, USDA made no changes to soybeans.
“We did have higher than expected world ending stocks for old and new crop,” said McBride. “No changes to the ending stocks for old or new crop here in the U.S. on the soybean side of things. Without a change in the acreage that was posted on the June 30th report, and no change to the yield side of things, there was no real expectation for major changes there.”
For corn, McBride says USDA’s July WASDE raised the 2020/21 feed and residual by 25 million bushels to 5.725 billion. That reduced carryout to 1.082 billion bushels, in line with the range of estimates.
“We did see a change in the ending stocks on the new and old crop,” said McBride. “We were slightly lower on the old crop by about 25 mbu. Then a change to the new crop because of the extra acres we added on that June 30 report at 1.432 bbu, just a slight 80 mbu increase there. Nothing that was really all that bullish or bearish. It was mostly a neutral report on the corn and bean side of things.”
McBride adds the market found support in the wheat complex.
“There was no change to production for winter wheat,” said McBride. “We were looking for a little bit of an increase there on a better-than-expected harvest. The spring wheat – which we already knew there were issues there – was actually much further below last year than expected.”
USDA’s July WASDE Report can be viewed here.
Story courtesy of the Iowa Agribusiness Radio Network
Image source Wikimedia Commons
