by Joel Pudenz
of Farmers Co-op
Yesterday’s trade centered around the USDA S&D report released yesterday morning. The biggest change from January was in corn: exports increased by 150 mln bushels dropping carryout estimates to 1.481 bln bushels. While this is mildly bullish, 1.481 bln is nearly two times the carryout from last year, keeping a limit on upward moves. It appears a sideways trade will continue with resistance around 4.50.
Soybean exports increased 15 mln bushel from the January report. This was offset by a 5 mln bu. increase in imports and 10 mln bushel decrease in residual usage – which keeps ending stocks flat at 150 mln bushels. With a record South American harvest progressing, Chinese purchasers may switch from U.S. beans to S.A. beans. There haven’t been any cancellations officially announced, but most are expecting them. The USDA still estimates exports below current sales.
Corn closed down 1.25 cents
Soybeans closed down 6 cents