Soybeans, Corn Little Changed Overnight; WASDE Bearish As Forecasts Top Expectations
(Agriculture.com) – SOYBEANS, CORN LITTLE CHANGED ON BEARISH WASDE VS. OVERSOLD POSITIONS
Soybeans and corn were little changed overnight as investors weigh the bearish Department of Agriculture report against an oversold position.
The USDA in its World Agricultural Supply and Demand Estimates (WASDE) report on Thursday raised its production estimate for corn by more than expected while lowering its soybean output forecast by less than expected.
That caused corn and soybean prices to both close lower yesterday. Losses, however, couldn’t be sustained as futures are already oversold. While prices are able to move lower, they seem to be nearing a bottom, according to analysts.
That’s caused a bit of a stalemate between bears that don’t see any upside in prices and bulls that believe futures will begin to rise now that the harvest is nearing an end.
Soybean futures for January delivery fell ½ cent to $9.84 ½ a bushel overnight on the Chicago Board of Trade. Soymeal was unchanged at $311.80 a short ton and soy oil fell 0.13 cent to 35.01 cents a pound.
Corn futures for December delivery declined ¼ cent to $3.41 ¼ a bushel overnight.
Wheat for December delivery fell 1 ¼ cents to $4.27 ¾ a bushel in Chicago. Kansas City futures also were down 1 ¼ cents to $4.27 ¾ a bushel.
WASDE REPORTS ON THURSDAY SLIGHTLY BEARISH, AS CORN, BEAN OUTLOOKS TOP CONSENSUS
In case you missed it, the U.S. Department of Agriculture released its November World Agricultural Supply and Demand Estimates (WASDE) report, which came out slightly bearish.
As expected, the agency raised its outlook on corn output while lowering its forecast for soybean production, though its projections topped most expectations.
The USDA said corn production would total 14.578 billion bushels on yields of 175.4 bushels an acre. That’s up from an October projection for 14.280 billion bushels on yields of 171.8 bushels an acre.
Analysts had expected the agency to raise its estimate to 14.330 billion bushels on yields of 172.4 bushels an acre, according to Reuters.
Output and yields were raised as harvest reports in the past month were more favorable than expected.
Soybean production was pegged at 4.425 billion bushels on yields of 49.5 bushels an acre by the USDA on Thursday. The total harvest forecast is down from 4.431 billion bushels but yields were unchanged.
Analysts had expected production at 4.408 billion bushels and yields at 49.3 bushels an acre.
SNOWFALL EXPECTED IN SOUTHERN MICHIGAN, NORTHERN INDIANA THIS WEEKEND
Snowfall is expected in parts of southern Michigan and northern Indiana this morning, though the weather isn’t expected to be severe, the National Weather Service said.
A wintry mix is expected to continue throughout the weekend in the area, which will make for slick conditions, the NWS said, and likely will keep growers who have crops left in fields from harvesting.
Other than some winds expected to gust up to 35 miles an hour, creating a slight fire risk, in parts of Nebraska and Kansas today, the weather maps look mostly quiet for the weekend.
