Grains are to the moon after the USDA report release:
Corn + 25 cents/bu (May @ 5.64 1/4) ßLimit Up
Soybeans +67 3/4 cents/bu (May @ 14.34 1/4)
Chi Wheat +24 3/4 cents/bu (May @ 6.26 1/2)
Cdn $ +0.00400 (79.57 cents)
WTI Crude Oil +0.33 (60.88/barrel)
And the bulls are off ….
March 1st stocks came in lower for corn, slightly higher than estimates for soybeans, and wheat stocks were higher than the trade guess. All in all, this is bullish for the old crop market.
All in all, the stocks report was closet to expected. The USA corn planted acres for both corn and soybeans are MUCH lower than expectations, while wheat is higher than expectations. Overall, these acreage numbers leave next year's balance sheet in a rationing mode. They will be questioned, but they are the numbers that will be traded until USDA updates its acreage numbers on June 30th. This report is a huge tone-setter for the markets heading into spring, and it is looking positive!! New crop is THRILLED with these numbers as we will need perfect weather to stay just comfortable in carry-outs for next year.
This are looking great today, but how things trade tomorrow, after the excitement subsides, is really a good indicator of the real market reaction of the report.