MARKET COMMENTARY

USDA report was out, immediate reaction is firmer in both corn and soybeans. Corn is up 11c and beans are up over 20c as I type this.  For corn, the planted acreage number came in below the average trade guess (but still in the range) at 88.9 million acres.  The stocks report also came in below guesses (but still in the range) and the corn market is currently trading double digits higher.  For soybeans, the story is very similar in that both the acres and stocks were below trade guesses (but within the ranges). 

The big takeaway here is that if someone in their head was thinking that the market could offset yield loss (too much water) with additional acres – that doesn’t appear to be happening. The bears are not happy and the bulls are running.  Right or wrong, in a matter of minutes the local producers may have just raised their goals back up to around that $4/bu mark once again… 

Have a great rest of the day!

@fccoopgrain