Shocking USDA Report
Thursday morning at 11:00 the USDA released the Stocks Now and Prospective Plantings report. These are one of the biggest market moving reports from the USDA of the year and Thursday was no exception! Corn rallied around 14 cents and for the week gained about 10 cents. The March 1st stocks were bearish at 8.89 billion bushel which was a record. However, the projected corn acres came in at 88 million acres. That was well below market expectations. Traders ignored the bearish stocks and bought corn anticipating a much tighter corn carryover next year.
It was a similar story for beans. Bean stocks were a record at 2.107 billion bushel. However, the projected planted acres came in at only 89 million acres. The average trade guess was 91 million and some were projecting over 92 million! The result was beans closed 26 to 31 cents higher and for the week gained 16 to 21 cents a bushel. Today the markets are closed in observance of Good Friday. Trading will resume Sunday evening with the overnight session. Is this a "game changer?" The key will be getting some follow through Sunday night and Monday.