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Grains Show Mixed Performance After USDA Supply Report

February 8, 2019 at 19:33 by Vladimir Vyun

Grains showed mixed performance on the market today, with corn falling, wheat rising, and soybeans being little changed. That is surprising, considering that the February World Supply and Demand Estimates released by the US Department of Agriculture were bullish for corn and soybeans, while being bearish for wheat. The USDA did not release the report in January due to the lack of funding caused by the government shutdown.

The projected production of corn in the 2018/19 marketing year was revised to 14.42 billion bushels, down from 14.626 billion in the December estimate. That is because expected yields were revised lower to 176.4 bushels per acre, down from 178.9 bushels.

The expected soybean production was at 4.544 billion bushels, down from the previous forecast of 4.6 billion. The projected yields are now standing at 51.6 bushels per acre versus the prior projection of 52.1 bushels.

Meanwhile, the projected wheat production was raised by 1.3 million tons, led by the 1.6 million ton increase for Russia. The projected US ending stocks were raised by 36 million bushels to 1,010 million bushels, though the projection for world ending stocks was lowered by 0.6 million tons to 267.5 million.

Futures for delivery corn in March declined 0.46% to $3.7475 per bushel as of 19:18 GMT on CBoT today. At the same time, wheat rallied 0.88% to $5.1775 per bushel. Soybean was little changed at $9.14 per bushel.

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