PM Comments 09/30/14
Tuesday, September 30, 2014, 4:09 PM
Submitted by: Dustin Weiner
The quarterly stocks report was out today and I must admit – people weren’t too worked about it ahead of time, probably due to the massive crops coming at us which would outweigh any potentially bullish surprises. Well, that is pretty much how it played out. The U.S. corn stocks were reported this morning (as of Sep 1) to be 1.236 billion bushels which is 51 million bushels more than expected. Not a big deal, nothing to see here, the market can continue lower. Corn closed down 5c.
U.S. soybean stocks were projected to be a tight 126 million bushels and it came out at 92 million bushels. Wow, that is the lowest stocks number we’ve seen since the mid 1970’s!! This should be friendly to prices, right? Well… not so fast. After a quick couple of blips higher the funds continued to stand in there and sell Nov beans (they had already sold another 3,000 contract by midday) and all eyes quickly focused on the fact that even with the reduced carry-in – there is a huge crop coming at us that will fatten carry-outs next summer. That 13c gain we saw yesterday was mostly negated with a 10c drop today.
Have a great afternoon!