Afternoon Comments 3/10/2014
Monday, March 10, 2014, 3:30 pmSubmitted by: Joel Pudenz
Good Afternoon!
Pressure from the March S&D report weighed on the market today with corn down a dime and beans down 40 cents. USDA’s March Supply & Demand report didn’t have any sizable differences from February. Corn ending stock estimates dropped by 25 million bushels (from increased exports) but carryout remains above 1.4 bln bushels. South American corn production estimates stayed even with last month, which was a bit surprising with recent weather issues in Brazil.
The soybean carryout estimate was stronger than the trade expected, only dropping by 5 mln bu. to 145 mln bu.
· Imports increased by 5 mln bu.
· Export increased 20 mln. bu.
· Domestic crush decreased by 10 mln. bu.
World production estimates dropped by 2.37 MMT; 1.5 MMT of that reduction was from Brazil due to the recent weather issues. While this may feel supportive, rumors of Chinese cancellations put some heavy pressure on the market. We have returned to pricing levels traded one week ago.
Corn closed down 10 cents at $4.78
Beans closed down 39 cents at $14.18
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