October 15, 2007

USDA report bullish for soy, corn; neutral wheat

Traders on the Chicago Board of Trade agricultural floor said Friday's (October 12) US Department of Agriculture crop data was supportive for the CBOT soy complex and corn futures, neutral for wheat futures.

Soy futures were called to open 10 to 15 cents higher Friday (October 12), corn futures 10 cents higher and wheat up 5 to 10 cents a bushel.

CBOT traders said the soy production number is bullish because many in the trade had been anticipating a modest increase in production, but the USDA kept yields at the same level reported in September and trimmed acreage by 500,000.

The USDA's corn data was seen as bullish with data dropping below the average of trade estimates, traders said. The USDA's corn yield estimate was a key factor, coming in three bushels an acre below the average trade estimate at 154.7 bushels an acre.

The USDA's wheat data was seen neutral, with traders saying the USDA's cut in domestic and world carryout was expected, traders said. However, the bullish fundamental outlook of the market with strong global demand and tightening stocks should keep prices underpinned, with spillover from corn and soy aiding opening price strength, traders added.