Grain News: April 9, 2019 – Bearish News
Markets are trading mixed following the release of the USDA S/D report where minor changes were made. The report was slightly bearish compared with average trade expectations.
Ethanol, feed and residual and export forecasts were lowered in the report. As a result, ending stocks forecast was raised by 200 million bushels. Global ending stocks were raised about 5.5 million tonnes. With ending stocks raised again corn could have a hard time rallying even with weather issues. Some are questioning lowering the feed use when hog, cattle and poultry numbers have been increasing.
Soybean stocks were lowered by five million bushels to 895 million bushels, which was below trade expectations. USDA made no adjustments to exports or crush. Brazil’s production was raised but kept Argentina’s production unchanged.
Wheat exports were cut 20 million bushels and feed and residual use was cut 10 million bushels. Endings stocks are forecast at 1,087 million bushels.
So, what is the game plan now with all this bearish news. The markets focus will be on planted acres and weather. We would encourage you to stay focused on your marketing plans and update them as the planting and growing season moves on.
Get your offers working for you while you are getting your crop in the ground. Your grain marketing specialists are ready to help get your old and new crop sold. Please take the time to be safe this spring—No one can take your place.