Grain Futures Post USDA Report Re-cap

Grain futures realized an initial boost in prices after Friday’s USDA crop production report, but have since cooled-off and returned to report day prices, and in the case of wheat futures, Kansas Wheat has since retreated even lower. All grain futures are down for the day between .02 to .09 cents for the day at the Chicago Board of Trade..

The USDA revised domestic corn inventories significantly lower for the 2014-15 season – almost 100M bushels lower. US soybean stocks revised down 75M bushels, and wheat reserves at the end of the 2015-16 season revised upward by 28M bushels.

It looks like we’re seeing the grain futures markets reflecting these revisions with current activity,” said Nicholas Medina, a futures and options specialist for Capital Trading Group in Chicago, regarding the fundamental assessment of the grain futures markets. Medina added, All grain markets may appear in strong uptrends now, but as we go into corn and soybean harvest the picture can be much different.”

As mentioned above, the grain markets are all in uptrends that emerged and accelerated without any significant pull-back – all based on a weather related outlook. From what I understand the weather is changing with milder temperatures and the Midwest is getting all the rain the crops need to flourish. Maybe its time to reassess the grain market’s uptrend so late in the season…

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