Grain futures were anticipating the USDA’s final look at the 2014/15 crop, but the actual data was mixed. Grain futures ended lower across the board with soybeans down nearly .17c, wheat down .075, and corn down a penny per bushel at the Chicago Board of Trade.
The final ending stocks saw an increase for corn by 50M bushels, a 15M decrease for soybeans, and a seven-million bushel decrease for wheat. The world production saw only a negligible increase in production for all three.
“Today’s grain market report was really no surprise, but rather a reflection of the numbers released last week,” said Gerry Plotkin, a Senior Market Strategist for R.J. O’Brien in Chicago, sharing his fundamental analysis regarding the current grain futures situation. Plotkin added, “Now that the 2014/15 crop season numbers are in, farmers can now evaluate how to continue for the forthcoming crop season.”
The soy-product futures are still in down-trends, but corn and wheat are still holding on to fragile technical up-trends (in my work). Prices going forward from here should be more in line with weather fluctuations rather than supply since supply from old crop is now a definite known variable.
ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION.