August 13, 2009
USDA report seen bearish CBOT corn, bullish soy
Wednesday's (August 12) government crop production and supply and demand reports were bearish for Chicago Board of Trade corn, bullish for soy and neutral for wheat, traders said.
The US Department of Agriculture reports lowered projected soy production and yield beyond trade expectations. Meanwhile, the corn production was raised higher than most expected, with the yield being pushed closer to 160 bushels per acre sooner than the trade was anticipating.
"Firm beans and weak corn, the beat goes on," a floor trader said.
The reports also increased wheat production and ending stocks, although the USDA's estimates were not a big departure from expectations, trader said.
Traders are tentative on early calls. Corn is called to open 3-5 cents lower, soy are called steady to 10 cents higher, and wheat is called steady to 2 cents lower.
"Are we going to trade the corn number or the bean number? That's the question," a trader said.
