Grain Markets Crash on Quarterly Stocks Report Ahead of Holiday WeekendThu, 28 Mar 2013 19:09:09 CDT
The USDA released its Quarterly Stocks and Prospective Plantings Reports Thursday and grain markets reacted immediately to the news said Tom Leffler of Leffler Commodities.
“Well, we knew they would have an impact. We were hoping it would have a positive impact as most thought we would see positive news from the USDA. They completely fooled us with everything being negative.”
All quarterly stocks were substantially higher than traders expected, and grain prices tumbled. Corn traded limit down at the close and wheat and soybeans were both off more than 40 cents.
Traders had expected wheat stocks of 1.18 billion bushels, but the actual figure was 1.25 billion bushels. Corn stocks were expected to post 5 billion bushels. The actual number was 5.4 billion bushels. Soybeans came in at one billion on an expectation of 940 million bushels.
“We did not see the feed usage of feeding wheat and corn as what the trade had expected or what we were led to believe back in early March from the monthly supply and demand report,” Leffler said.
You can hear more of Tom Leffler’s analysis by clicking on the LISTEN BAR below.
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