The Chicago Board of Trade displayed green across the board, after the release of the September Quarterly Grain Stocks report.
A market strategist gives us the rundown below.
The U.S. Department of Agriculture (USDA) on Monday released its latest Quarterly Grain Stocks report. The highly anticipated report brought much surprise to the market. Brian Grossman, market strategist with Lakefront Futures & Options, speaks to the biggest surprise of them all.
“Corn (is) reacting to a friendly stock number, 2.114 billion bushels. That was about 200 million bushels below what the average trade was looking for,” Grossman said. “A big surprise – Not only in the sense that it is lower, but now we are no longer talking about record numbers for corn.”
The Department of Agriculture lowered soybean ending stocks, however, not enough to pull away from record-setting volumes. Noticeable amounts of green shined in this market, as China made additional soybean purchases.
“Soybeans also had a surprise, a 913 million bushel ending stock, (which is) nowhere near the daunting one-million we were fearful of or the 1.2 (million) we have been talking about for a period of time,” Grossman said. “To top-off the excitement, we had China shopping around again this morning. They are in the books for another, reported one- to two-million metric tonnes, and they had pretty good shipment numbers.”
Grossman believes this report hints at yet another marketing opportunity.
“A couple months ago we thought this crop was in trouble. The market showed us how quickly that can take it away. Now that we’re getting some opportunity back, we need to get back into that marketing mindset, look at our market plans and figure out what we need,” Grossman said.
This article originally appeared on the Iowa Agribusiness Radio Network