Wake Up Call Allendale Advisory Center: Grain markets are higher led by the soybean complex after the USDA report. The US Dollar, crude oil and stock indices are lower on profit taking and weak corporate earnings.
The UDSA surprised traders by lowering ending stocks in old crop soybeans by 45 million bushels from last month and setting the first estimate for 2016/17 ending stocks at 305 million bushels, 100 million bushel less than analyst expectations. They increased usage in several categories changing focus from a supply driven market to a demand driven market. However, any disruption in production in US will add to fund buying enthusiasm.