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Wednesday, January 13, 2016

Have the Markets Hit a Low?

Have The Markets Hit... | Corn | Agriculture: The USDA’s report came out yesterday at 11 a.m., the final report showing a cut in corn yields of 0.9 bu/acre to 168.4 bu/acre, and soybean yields cut 0.3 bu/acre to 48 bu/acre (still a record-shattering crop). The market reacted with a likely bottom placed in prices. (Finally!) But prices may not go up much, either, during the coming winter months as we still have a very large carryout (1.8 billion bu corn, 440 mb soybeans, and 941 mb wheat).�
The USDA gave us the final Jan. report for 2015 crops, surprisingly lowering the corn yield –0.9 bu/acre to 168.4 bu/acre, with production down 53 mb from November. They also cut soybean production 51 mb by cutting yields 0.3 bu/acre to 48 bu/acre, and cutting harvested acreage by 600,000 acres, which is very unusual this late in the game. (They just figured that out now??) Overall, it was a slightly friendly report, but then again the ending stocks of corn actually went up 17 mb as they cut demand, and soybean ending stocks were only cut 25 mb to 440 mb (still a very large number and burdensome to say the least). Prices bounced yesterday nicely, but really all it means is that the prices have probably finally bottomed.

Wake Up Call Allendale Advisory Center

Wake Up Call Allendale Advisory Center: Grain markets are slightly lower�following yesterday's buying after the slew of USDA report data. Crude oil firms after trading below $30/barrel in yesterday's action.

The USDA had something for everyone is its four reports out yesterday.�For Quarterly Grain Stocks, USDA reported 11.212 billion bushels of old crop corn as of December 1, 2015 (11.237 estimate), 2.715 billion bushels of soybeans (2.720 estimate), and 1.738 billion bushels of wheat (1.698 estimate) were also reported.

For US production, corn was revised lower by 52 million bushels, while soybeans were reduced by 51 million bushels. Acreage and yield adjustments were made in both cases.

US Ending Stocks had corn at 1.802 billion bushels (1.785 estimate), soybeans at 0.440 billion bushels (.468 estimate), and wheat at 0.941 (0.919 estimate).