Last Friday's USDA crop report was a real yawner. They left corn and bean ending stocks unchanged. Traders had feared a much higher corn and lower bean number and were positioned accordingly. Corn ending stocks were left at 632 million bushels, versus pre-report estimates of 643. Corn exports were cut 75 M.B. Corn imports were raised 25 M.B.
This import adjustment is something unfamiliar to the trade. But consider this: with record high corn and bean prices seen three of the last five years, we have seen a rush to plant more acres. The Midwest is already planted fencepost to fencepost, so American growers are going to South America to buy cheap land to plant on that seems endless, then bring the harvest home to the US. We expect to see increased imports in the years ahead.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
