April 2020 USDA Supply & Demand

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Bigger numbers, market doesn’t care.

Today’s USDA monthly WASDE report bumped up the U.S. ending stocks of corn by 200 million bushels, beans by 55 million bushels and wheat 30 million bushels compared to the last report.

All the U.S. stocks estimates were bigger than trade expectations.

Initially futures prices slipped, but quickly found buyers and bounced back to higher prices. Beans moved up through their green line 20-day moving average into what appears to be the beginning of a new uptrend.

The numbers we received today are hopefully the final report on disastrous demand destruction caused by African Swine Fever, China trade war, oil war, 35% drop in the stock market and the pandemic COVID-19.

Ladies and gentlemen, I maintain that to get these five powerful fundamentals coming to the intersection at the same time is a very very unusual occurrence. The likelihood is each of these will have less and less influence in the weeks ahead.


Weather has now moved to the front burner. Nobody is very worried because we have plenty grain in the bin. But, as you can see from the ending stocks, they are expected to be smaller than last year.

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These data and comments are provided for information purposes only and are not intended to be used for specific trading strategies. This commentary is written as a daily marketing tool to help farmers sell the grain they raise. Although all information is believed to be reliable, we cannot guarantee its accuracy or completeness. Past performance and testimonials are not necessarily indicative of future results. Commodity trading involves the risk of loss, and you should fully understand those risks before trading.