April 1, 2009
CBOT Traders: Report seen bullish soy, neutral corn, wheat
US Department of Agriculture's planting intentions and quarterly grain stocks reports were bullish for soy and neutral for both corn and wheat, Chicago Board of Trade floor traders said.
Soy is called to open 20-30 cents higher on the report, which showed lower-than-expected planted acres and quarterly stocks. Corn and wheat are called 3-5 cents higher on spillover support from soy, traders said.
"If [soy]beans want to run, corn and wheat will run too," a trader said.
Soy planted acreage provided the biggest surprise in the report. Although the USDA projects plantings slightly higher than last year, the government's projection is more than 3 million acres below the average analyst estimate.
The quarterly grain stocks estimate for soy was also lower than expected, traders said.
The USDA projects both corn and wheat will lose acreage from last year, as traders expected. But many in the trade expected those acres to shift over to soy.
"We lost 5 million acres. Where are all these acres going?" a trader said.
