Total Farm Marketing market advisor John Heinberg says USDA chose to punt on some of the demand numbers in the February report. “The big question was what will they do with corn? They punted that by bringing carryout down 50 million bushels. This put pressure on the grain markets and now, we’ll see if it holds.” Traders will expect to see the supply picture tighten even more in future reports. “This will come down to a prove it mentality. Can we get those bushels shipped? I think that’s what the USDA is focused on in terms of making the adjustment. The other surprise, at least a little bit, was the bump up in the Argentine corn crop. We have seen beneficial rains come through and that’s where we saw the little jump in the world numbers.”
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