January 14, 2008

USDA report bullish for corn, neutral for beans
 

Friday's US Department of Agriculture crop production, quarterly stocks and supply/demand reports were bullish for Chicago Board of Trade corn, neutral to friendly for CBOT wheat, with soy in the role of a follower, traders and analysts said.

Corn futures are predicted to start trading 7-10 cents higher on lower-than-expected production and stocks data. Soy are expected to open 3-5 cents higher or more as the market follows corn despite USDA data that were seen as neutral to slightly negative, floor analysts said.

Wheat futures are expected to open higher, with new-crop hard red winter wheat futures at the Kansas City Board of Trade the upside leader on smaller-than-expected acreage. Soft red winter wheat in Chicago is seen higher as well, with tight inventories continuing to fuel upside momentum despite seedings and stocks that exceeded expectations.