The U.S. Department of Agriculture (USDA) on Thursday released its November Supply and Demand (WASDE) report. Brian Grossman, Zaner Ag Hedge market strategist, says much to analyst expectations, there were some bullish findings.
?The first bullish aspect – Corn and soybean yields both coming down,? Grossman said. ?Corn yield now at a 178.9, down one-point-eight bushels. We got the soybean yield down to 52.1, down one bushel.?
However, decreased yields do not mean as much with growing ending stocks.
?Ending stock situation in soybeans did grow, as were expecting, up 70 million at 955 million bushels, knocking on that one billion bushel mark. Corn ending stocks improved. Global numbers increased. China had a very large increase. But excluding the change from China, we still had global ending stocks going up a few million metric tonnes,? Grossman said.
The key takeaway from today?s report: Supplies are going down, but so is demand.
?Let?s let the dust settle here. The underlying tone for the report was while supplies are coming down, we are also seeing lowering demand numbers. It?s something we?re going to have to be monitoring,? Grossman said. ?I?ve been commenting, on a couple articles, lately about our soy and corn exports compared to South America. This report today might have confirmed my concern there.?
