Soybeans Sharply Higher; Corn Gets Crushed On Record Production
Grain Futures-- Soybean futures for the July contract shot up 27 cents a bushel closing right on the highs of the trading session at 14.57 due to the fact of a bullish USDA crop report which came out this morning lowering the ending stocks for the next marketing year down to 145 million bushels which is below the average analyst estimate of one 170 million bushels while suggesting that farmers this year are likely to produce 3.20 5 billion bushels up around 5% from last year but that's overshadowed by exports in this next marketing year which are rising a whopping 14% to 1.50 billion bushels. Corn futures for the July contract were absolutely crushed down 20 cents to close right around 5.87 a bushel due to corn production that is expected to rise this year to a record 14.79 billion bushels that is up from last year's level which was only one 12.35 billion bushels and are expecting 166 bushels an acre which is much higher than last year's 147 bushels an acre and in my opinion I remember when corn would produce 8.5 billion bushels and now were almost doing 15 billion bushels that is unheard of and could absolutely flood the market with corn if we don't have any weather problems. The record corn production was in 2009 harvesting 13 billion bushels however if the USDA is correct at harvesting 15 billion bushels this year we are talking about a breaking the record by 2 billion bushels which is astonishing. What a difference in price and fundamentals between corn and soybean prices of late where soybeans continue a bullish trend, however I am starting to think that soybeans may have topped out in the short term especially if corn prices continue to slide and I expect that they will. Rough Rice futures for the July contract rocketed up 40 cents to close right around 15.80 looking to make fresh contract highs after the big drop off in prices two weeks ago while wheat futures basically finished unchanged for the day with the report deemed neutral. If you are looking for a futures broker feel free to contact Michael Seery at 800-615-7649 and he will be more than happy to help you with your trading.
There is a substantial risk of loss in futures, futures option and forex trading. Furthermore, Seery Trading is not responsible for the accuracy of the information contained on linked sites.