USDA and WASDE reports considered favorable to soybean markets



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DES MOINES, Iowa – US farmers will get a bigger corn harvest than expected, according to the USDA.

Thursday, the USDA released its reports on plant production and supply / demand in September.

As a result, the soybean market is trading upward and is rapidly pulling up corn and wheat.

In mid-term, corn futures for December are down 5 1/2 ¢ to $ 3.54 3/4. Corn futures for March are down 4 3/4 ¢ to $ 3.67. However, corn is moving towards the positive side.

November soybean futures are up 16 1/2 ¢ to $ 8.83 3/4. January soybean futures are higher at 16 ¢ to $ 8.96.

December wheat futures are lower by 4 1/2 ¢ at $ 4.73 1/2. However, this market is moving towards green trading.

December soya meal futures are $ 2.60 a tonne higher at $ 297.30. The December soybean oil futures are up $ 0.20, at 29.03 ¢ per pound.

On foreign markets, the price of crude oil in the NYMEX is down $ 1.02 a barrel, the US dollar is down and the Dow Jones Industrials are up 108 points.

American production

For corn, the USDA has set this year's output at 13.799 billion bushels against an average trade estimate of 13.5 billion and its August estimate of 13.9 billion bushels.

In terms of yield, the USDA estimated that the average crop yield was 168.2 bushels per acre. the estimated trade at 166.7 bushels and the government estimate at 169.5 August.

In its report, the USDA has set soybean production in the United States at 3.63 billion bushels against the average. trade estimated at 3.57 billion bushels and at August estimated at 3.68 billion.

In addition, the USDA estimates that the harvest in the United States averages 47.9 bu / yr compared to the average. trade estimate of 47.2 bo./acre and estimate of the month of August of 48.5.

Area planted and harvested

The USDA maintained planted and harvested acreage of corn, soybean and soybeans unchanged. For US corn, the estimated planted area remains at 90.0 million and the area harvested by the USDA is still 82.0 million compared to that of August.

For soybeans, the US planted area is 76.7 million, which is its August report. In addition, the area harvested in the United States for soybeans remained unchanged at 75.9 million.

Final stocks in the United States 2018/19

For old-crop corn stocks, the USDA has set US inventories at 2.44 billion bushels against average prices. trade estimated at 2.39 billion bushels and 2.36 billion USD in August.

For soybeans, final stocks in the United States are estimated at 1.00 billion bushels against the average. trade estimated at 1.05 billion bushels and USD 1 billion USD in August.

Final stocks in the United States 2019/20

In anticipation of the end of the next marketing year, the USDA has set US corn inventories at 2.19 billion bushels against the average. trade estimated at 1.93 billion bushels and 2.18 billion August.

For soybeans, the end-of-season stocks of new US crops are set at 640 million bushels relative to the average trade. estimated at 660 million euros and that of the USDA at 755 million bushels in August.

Business reaction

Jack Scoville of the PRICE Futures Group said the current USDA / WASDE figures are themselves slightly lower than expected.

"But they are not price negative to the point that we will never again have a slight rise. I think the returns will eventually fall further because they do not correspond to what I hear from the country. Beans maybe a lot more, the corn should go down more and maybe in the lower 160s. Closing stocks of soybeans have returned to a realistic area as corn ending stocks are disappointing.

Scoville added: "The reports have generated a positive response and I hope for a strong closure. We have already taken into account this type of numbers in the August reports. So now we can gather a little bit. The harvest could fall further, but for now, I think we need a pop in the short term, if not more, "says Scoville.

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