Small fundamental changes disappoint bullish traders
After the USDA released its numbers, prices slid across all crop markets before bouncing 15 minutes later.
Kansas City wheat gave us the strongest post-report trade. KC March wheat rallied to new recent highs following the report with traders concerned about dry weather forecast in the western Southern Plains. Chicago and Minneapolis wheat also firmed but are currently trading below recent highs.
This month?s 2022-23 U.S. corn outlook forecast lower corn used for ethanol by 25 million bushels. With no other use changes, U.S. corn ending stocks are up 25 million bushels from last month.
The USDA lowered US soybean crush by 15 million bushels. With soybean exports unchanged, ending stocks are forecast at 225 million bushels, up 15 million.
The 2022-23 U.S. wheat supply and demand numbers were little changed this month, with only minor revisions to domestic use and ending stocks.
The global numbers contained no shocks either.
Argentine production estimates were smaller than traders expected but were well below the USDA?s January estimates.
Source: USDA, Bloomberg