According to Zaner Ag Hedge Chief Market Strategist Ted Seifried, it’s the way USDA lowered the quarterly stocks that is surprising. “The USDA didn’t lower production really from last year. In fact, they did make marginal changes and revised it, but it was just so small. They increased corn production 2.67 million bushels, it’s nothing,” explains Seifried. “For soybeans, the revision was 333,000 bushels. It doesn’t really make an impact on the balance sheet. For the report numbers to come in below expectations that means demand was a lot stronger than we knew about. Seifried says that’s a head-scratcher. “I’m a little confused by the numbers, but that doesn’t discount the fact that these are really bullish numbers.”
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