USDA Revisions to World Corn & Wheat Stockpiles a Surprise to Grain Markets

Grain markets such as corn futures & wheat futures were caught off-guard today when the USDA made surprise revisions to these two grain’s global stockpiles because of signs there is improving grain demand. Both grain futures are hovering near “unchanged” for the day (as of this writing) at the Chicago Board of Trade after both grain markets have been trading on both sides of the open today.

The USDA forecast for corn stockpiles was actually less than the lower estimates of expert analysts. The domestic stockpiles of wheat were also lowered causing both of these markets in the grain complex to temporarily rally.

The big surprise of the day is demand for corn is more than what has been expected,” 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, Feed grain prices are still relatively low and that is a plus for our livestock producers with growing herds.”

The grain complex is a mixed-bag at this time: wheat futures trend is down with no bottom in sight; corn futures have been trading sideways for the past 1.5 months; and soybean futures are technically up, however taking out Friday’s low (with follow-through) resumes the overall down-trend. No correlation, it seems, with grain futures at this time.

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.