Grain Stocks Tighten

The latest World Agricultural Supply and Demand Estimates Report offered a bullish tone for corn and soybeans, with new crop stocks coming in significantly lower than trade expectations. “USDA came in and obviously kept demand fairly strong for both corn and soybeans, and stocks coming in 220 million bushels less than anticipated by the trade for corn,” said Randy Martinson, president, Martinson Ag Risk Management. “That’s very friendly as far as corn is concerned. Soybean stocks also dropped 80 million bushels below expectations, despite an increase in yield. “That was even before we had a U.S.-China trade deal, too,” Martinson added weather will now take center stage. “We’re at a position where stocks are fairly tight, and any kind of a hiccup in production is going to cause these markets to see some strength.”