USDA reports in line with pre-report estimates. No Surprises
As you look at the table of numbers below, you will notice the biggest change came in Brazilian soybeans, which were cut 5 million tons from last month?s estimate, but still came right in the middle of what traders expected.
The USDA expects a few more bushels of crop carryout, both in the world and U.S., but not enough of a difference to move prices.
This is about the most neutral report we have seen in a while.
Traders want to be bullish, thinking the combination of further South American crop losses, strong demand, and rampant inflation are all working in their favor. Spec funds are building bigger long positions in corn and beans and bailing out of short wheat.
U.S. equity major indexes cleared the green line 20-day moving average yesterday and are posting additional gains today.
Source: USDA, StoneX, Reuters