(Agriculture.com) – The large piles of U.S. corn and soybeans shrink, while the world crop sizes drop too, according to fresh USDA estimates Friday. As a result, the CME Group’s farm markets have reacted positively.
In its June Supply/Demand and WASDE Reports, USDA pegged the U.S. 2015/16 corn and soybean ending stocks below its May estimates and below the trade’s expectations.
As a result, the CME Group’s farm markets moved higher, following the report release. Since the 11:00 a.m. CT report, the markets have backed off.
At the close, the July corn futures settled 3 1/2 cents lower at $4.23, Dec. futures finished 2 3/4 cents lower at $4.30 3/4 per bushel.
July soybean futures finished 2 1/4 cents higher at $11.78 1/4, after hitting a high of $12.08, while Nov. soybean futures finished 10 cents higher at $11.62 3/4.
July wheat futures finished 15 1/4 cents lower at $4.95.
July soymeal futures closed $.50 short ton higher at $414.00. July soyoil futures closed $0.27 lower at $32.76.
In the outside markets, the Brent crude oil market is $1.31per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 160 points lower..
Jason Roose says that today’s data from the government gives the trade a peek into the increased interest in U.S. ag commodities.
“The USDA June crop report was all about demand. Ending stocks were lowered, again, this month by increasing exports. The market will remain very nervous with every weather shift,” Roose says. The trade was anticipating a bullish report. The key for today’s market is how much weather premium is built into today’s price.”
