Traders Expecting USDA Reports to Negatively Impact MarketsThu, 07 Nov 2013 15:33:41 CST
Traders are awaiting the release of the latest USDA Crop Production and World Agriculture Supply-and-Demand Estimates. The report will be released at 11 a.m. CDT Friday. It will be the first report in 60 days due to the federal government shutdown last month.
Justin Lewis with KIS Futures in Oklahoma City says the report will definitely be the market driver on Friday with analysts expecting the report will be overall bullish.
“If you look at what the estimates are on USDA corn production and soybean production, corn--we’re looking for just over 14 billion bushels with a yield of 158.9 and harvested acres a number of 88.09 million acres. Soybeans--3.221 billion bushels produced total. That’s a yield of 42.4 and a harvested acres number of just under 76 million acres.
“The big thing is we’ve increase the yield here for corn and soybeans both; about a bushel and a half in the soybeans and about 3 ½ bushels on corn. Both of those are negative factors."
Lewis said corn ending stocks in tomorrow’s report are expected to be over 2 billion bushels. Last month the projection was for 1.855 billion bushels. He said soybeans are projected to be 172 million bushels and wheat stocks are expected to come in at 519 million bushels.
Lewis said there is unconfirmed talk about the possibility of the EPA announcing changes to the Renewable Fuels Standard which could also help move the markets Friday.
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