Yesterday’s crop report showed very limited changes on the balance sheet. The USDA lowered 2019 production by 46 million bushels, and took out 50 million bushels of ethanol demand, making for a net change into new crop of 5 million bushels higher.
Soybean changes were also pretty minimal on the report. The USDA raised the crush 15 million bushels to a record 2,140 million bushels. Exports were lowered by 25 million bushels for a net increase in old crop stocks of 5 million bushels at 585 mil bu. New crop stocks were very close to trade expectations at 395 million bushels, with the USDA increasing the crush by 15 million bushels.
Look for mixed trade today, and with improved chances of rain coming, I don’t the market trying to rally today or anytime soon. My guess, we chop back into the middle of the range again, and the market fails at the end of the session. There is plenty of weather ahead, but today the forecast is bearish.
Have a Safe Weekend!