The grain trade reacted bearishly to the soybean numbers in the USDA’s Quarterly Stocks report. According to Clayton Pope Commodities President Clayton Pope, that kind of a response is warranted. “To jump the soybean carryout by 81 million bushels from one month ago is significant for the carryout. The wheat numbers were bullish, but they weren’t wildly bullish if you ask me. Definitely lower production, too, but not eyebrow raising.” There’s a combination of less demand and increased production. “This is an inventory report, defining the final carryout for the old crop. In the September USDA Supply and Demand report, there was an old crop soybean carryout of 175 million bushels and this came out at 256 million bushels. They didn’t use as much as people thought they did. For the corn, it overshot by 50 million bushels more than it said in the last report.”
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