Friday, March 8, 2013

March USDA S&D Recap

USDA March S&D Report Recap

Friday, March 8, 2013, 11:16 am
Submitted by: Dustin Weiner

The report came out, initial glance looks a little friendly to corn and negative to soybeans.  The USDA did NOTHING to ending stocks projections, leaving them the same as last month.  They left the corn carryout the same – when the market was expecting a slight increase.  They left the soybean carryout the same – when the market was expecting a slight decrease.  

Corn:
To get to their number they decreased corn exports (from 900mb down to 825mb) and increased feed/residual usage and imports to offset it exactly.  This leaves the carryout at 632mb.  Exports are now projected to be 1 billion bushels less than two years ago.

Soybeans:
They changed NOTHING.  Yep.  Nothing.  No change to either export or domestic demand projections.  With the additional business from China this past month (thanks to SA shipping delays), this is a surprise.  The U.S. is well ahead of this projected pace on soybean exports – this report would indicate that exports will need to come to a grinding halt this Spring/Summer sooner than planned.

Currently
Corn is trading around a nickel higher
Soybeans are down 10 to 15 cents

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