As is usually the case, there were a few surprises in the USDA'S most recent supply and demand report. The biggest surprise for the markets was in the area of ending stocks which really ballooned for wheat. As a result the market has taken a bearish tone to wheat now forecasting prices in that $6.30-$6.60 per bushel price range.
For corn, the report was more or less neutral, showing better demand for corn as both a feed and energy source while also projecting another strong export market. However, ending stocks still remain ample and so any price rally for corn, not weather related, may be hard to come by. DTN grain analyst Todd Hultman shared with me what he sees for the corn market and why a price rally may be very difficult .
The report was definitely bullish for beans. Even with world production up, demand looks to be very strong. This according to both the USDA and private forecasters who have price estimates at $14.25 -$14.75 a bushel, still down from this years price but higher that the earlier estimates that called for soybean to range from $12.50-413.25 a bushel.
Hultman shared with me what he sees for soybeans and explained why soybeans should have a very good price year.
The next big report is due out in January and there is the possibility that the size of both the 2013 corn and soybean crops will be increased. The other news will come from producers themselves as far as what they will plant in 2014 and will we see an increase in soybean acreage?