Limit up now and most likely locked up for today.” Grains are adding back cost premium with a flurry, after todays all essential USDA Acres and Stocks reports. The acres set the phase with less than prepared for acres for both corn and soybeans.
U.S. farmers will plant lower corn and soybean acreage than the trade anticipated, according to the USDA.
As a result, the CME Groups corn market struck its everyday limit up (25 cents) trading costs..
As a result, corns day-to-day trade limits will expand to 40 cents tomorrow. May soybean futures ended up its daily limit of 70 cents at $14.36 1/2.
For soybeans, the USDA sees 2021 acreage at 87.6 million vs. the trades expectation of 89.9 million and the USDAs Outlook Forum quote of 90.0 million.
In its report, the USDA pegged the March 1, 2021, U.S. corn stocks at 7.7 billion bushels vs. the trades quote of 7.76 billion bushels.
May soy oil futures closed 2.46 cents greater at 52.92 cents per pound.
May wheat futures closed 16 cents higher at $6.18..
As an outcome, the soybean markets everyday limitations will expand, tomorrow, too $1.05.
The USDA approximates both the quantity of grain stocks on and off-farm as of March 1.
” The stocks report was mainly in line with trade guesses, a little less in corn and a little larger in wheat with soybeans dead-on guesses. Not much there. The Prospective Plantings report was wild, much listed below trade guesses for corn, beans, and wheat,” Scoville states.
In the outside markets, the NYMEX crude oil market is -1.33 lower (-2.20%) at $59.22. The U.S. dollar is lower, and the Dow Jones Industrials are 42 points higher (+0.13%) at 33,109 points.
At the close, the May corn futures settled up its everyday limit of 25 cents at $5.64 1/2.
In its March Prospective Plantings Report Wednesday, the USDA pegged the 2021 U.S. corn acreage at 91.1 million, compared to the trades expectation of 93.2 million and the USDAs previous quote from the Outlook Forum in February of 92.0 million.
Jack Scoville, PRICE Futures Group, says that the USDA released a wild report which the uptrend is back.
” Grains are including back cost premium with a flurry, after todays very important USDA Acres and Stocks reports. The acres set the phase with less than anticipated acres for both corn and soybeans. Bigger acres are felt to be required with stocks at multiple-year lows, with a margin of error tight going into spring,” Roose says.
Jason Roose, U.S. Commodities, states that todays USDA report is informing the story of tight stocks..
May soymeal futures settled $25.00 short term greater at $423.20.
” Im not sure why the U.S. farmer is not going fencepost to fencepost, however he was not planning to when he was surveyed. Plus, there was a lot of prevent plant area in 2015 that was anticipated to get planted this year. I am not sure I think the numbers, but they are what we got and we have to ride with them. Limit up now and probably locked up for today. We could be greater tomorrow. Possibly we go down a bit tomorrow, only to go higher later. The uptrend is back,” Scoville states.
For soybeans, March 1 stocks totaled 1.56 billion bushels vs. the trades quote of 1.54 billion bushels.
July soybean futures ended up its daily limitation of 70 cents higher at $14.27 1/2.
July corn futures settled up its day-to-day limitation of 25 cents higher at $5.47 1/2.
New crop November soybean futures settled up its daily limitation of 70 cents at $12.56 3/4.
USDA sees U.S. wheat stocks, since March 1, at 1.31 billion bushels vs. the trade estimate of 1.27 billion bushels.
All wheat acreage is pegged at 46.6 million vs. the trades expectation of 44.97 million and the USDAs Outlook Forum quote of 45.0 million.
Anything above 180.3 million acres breaks the 2017 total acreage record.
Roose included, “Spring weather condition will be carefully viewed and will acres be included in with greater rates, and will exports stay competitive with a more powerful dollar,” Roose states.
New crop December corn futures closed up its everyday limit of 25 cents at $4.77 1/2.
” The stocks report was mainly in line with trade guesses, a little less in corn and a little bigger in wheat with soybeans dead-on guesses. The Prospective Plantings report was wild, much below trade guesses for corn, beans, and wheat,” Scoville says.
March 1 Grain Stocks.