The USDA?s first look at the 2025-26 crop year balance sheets was favorable for both corn and soybeans. New crop corn carryout came in at 1.8 billion bushels and new crop soybean carryout was 295 million bushels. Both domestic carryout totals were below the average trade estimates, falling to the low end of the trade range. The global corn and soybean carryout totals for 2025-26 were also at the low end of the trade range. For corn, the global carryout of 277.8 million tons was even smaller than the lowest trade estimate.
Combined with the weekend news of a 90-day rollback of US-China tariffs, we are starting the new trading week on a positive note with some optimism ahead. It is possible that the Administration will also offer some biofuel guidance in the next week or two, to build further upon this optimism.
The wheat numbers had a less optimistic tone as domestic and global wheat carryout for the 2025-26 crop year were larger than the average trade estimate.
The USDA finally quit dragging their feet on South American production estimates and increased their Brazilian corn production estimate by 4 million tons to 130 million tons.
Be ready to sell the next round of Sell Signals. Soybeans could trigger a Sell Signal this week. We will give you a call when it is time to sell.
Source: USDA, Reuters