July 2020 USDA Supply & Demand

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USDA reports mostly neutral

The biggest number change in today’s USDA report was the cut in corn production from 15.995 billion bushels down to 15.000 billion. It was not really a surprise, only an adjustment due to the reduced acreage from last week’s report. Corn yields were unchanged.

The second biggest number change came in ending soybean ending stocks for this fall (2019-20), now pegged at 620 million bushels up from 585 million last month and 584 million expected by the trade.

It is surprising that soybean basis levels can be so strong with such a large and increasing soybean carryout estimate.

The USDA lowered winter wheat production 4% from their June estimate, while raising durum wheat production 3%. Other spring wheat production was down 2% from last year.

Nothing else in the report stuck out to us.

Traders did not get anything positive to sink their teeth into. The weather forecast looks less threatening today than yesterday. Prices continue in the range that they have traded all week, except for Chicago wheat, which is giving us a nice Sell Signal.



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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.