The February WASDE report is described as “neutral” or a “wet blanket” for the grain markets. USDA did not lower South American corn and soybean production as much as grain traders forecasted. USDA also did not raise exports as much traders expected. Zaner Ag Hedge Chief Market Strategist Ted Seifried says domestic corn ending stocks remain unchanged. “The whole balance sheet was unchanged, a bit disappointing. Soybeans were down 25 million bushels, because crush increased. That needed to happen,” says Seifried. “The markets have come off the highs, but the overall feeling may turn into the idea this is the USDA being the USDA and stair-stepping into bigger reductions.” USDA lowered both Brazil and Argentina’s soybean crops, but left U.S. exports unchanged because they lowered Chinese imports. “I think that’s USDA saying look, we’ll raise U.S. exports if we see proof in the pudding. We need to see exports starting to happen in a bigger way before we do that. The trade may feel like that will happen and factor in a tighter balance sheet for soybeans.”
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