Markets Drop Due to WASDE/Crop Production Reports, Tom Leffler Offers AnalysisWed, 11 Jun 2014 16:03:37 CDT
Markets turned lower Wednesday in reaction to the latest Crop Production report and World Supply Demand and Estimates released from the US Department of Agriculture.
Tom Leffler of Leffler Commodities says the biggest surprise was how the markets reacted.
"Seeing the big down side, especially in our wheat complex, as most people in the southern plains know we lost a lot of wheat already to the weather, we having trouble harvesting what there is out there in some places, because of the weather bringing us moisture now and to see the market crash was a bit of shocker," Leffler said.
"We saw the Kansas wheat production lowered by 16.8 million bushels," he said. "They lowered the bushel per acre by two bushels."
"Oklahoma saw their production lowered by 3.3 million bushels, their bushel per acre by one bushel," Leffler said. "And Texas saw their production lowered by 7.6 million bushels and their yield by four bushels."
"Overall, we saw the old crop wheat only increase on the ending stocks by three bushels but we did a 22 bushel increase in the new crop and new crop world stocks increased over a million metric tons, so that helped put some pressure on the wheat," Leffler said.
The corn report wasn't as negative. Leffler says we saw the corn old crop ending stocks come in 24 million lower than what the trade was looking for. While new crop came in 10 million higher than what the trade was looking for.
Soybeans saw old crop ending stocks came in two million bushels lower than what the trade was, but they did see new crop come in six million more, but we really didn't see anything more in the soybeans.
Overall this report was traded negative. Leffler says we might see a bounce in the market on Thursday. Market analysists will now put their eyes on the June 30th report, which is the quarterly stock eport and the USDA planting acreage number. Leffler looks for those reports to have a bigger impact on the market.
Click here for the complete WASDE report release Wednesday.
Click here for the full USDA Crop Production report.
WebReadyTM Powered by WireReady® NSI
Top Agricultural News