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Grain Rally on USDA Report

March 30, 2012 at 21:23 by Vladimir Vyun

Corn jumped today after the US Department of Agriculture reported that inventories reached the lowest level in eight years. Wheat and soybeans also surged.

Corn stocks fell 8 percent to 6.01 billion bushels as of March 1 from a year ago. That was the lowest level in the period since 2004.

Wheat stockpiles fell 16 percent from the previous year to 1.20 billion bushels. That was the lowest level in three years.

Soybeans inventories were up 10 percent. Still, prices rose as US farmers plan to sow 73.902 million acres this year, 1.4 percent less than in 2011 and the lowest in five years.

Rabobank International wrote in its report today:

Given the long season ahead and the risk of weather disruptions along with low inventories, the outlook for soybean and corn crops remains bullish.The upside risk is considerable, and if crop potential is threatened by weather, we would expect prices to visit new highs.

Corn price climbed from $6.0550 to $6.4400 per bushel on CBoT today. Soybeans advanced from $13.5450 to $14.0200 per bushel in Chicago, while the intraday high of $14.1600 was the highest price since September 12. Wheat surged from $6.1525 to $6.5875 per bushel today.

If you have any questions and comments on the commodities today, use the form below to reply.

2 Responses to “Grain Rally on USDA Report”

  1. jorge

    How long will u expect this bullish sentiment last???


    enivid Reply:

    Not for too long.


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