September 12, 2012
Producer Marketing Manager
USDA Supply/Demand Report released this morning.
Corn: As of 7:45 Down 17
The USDA September Supply/Demand Report was released this morning and showed total production at 10.727 billion bushels compared to 10.778 billion bushels in the August report. National yield was estimated at 122.8 bu/A, just under the 123.4 bu/A in August. When you look at the demand side of the equation exports were lowered by 50 million bushels and ethanol grind was left unchanged at 4.5 billion bushels. This brought Sept 2013 carryout to 733 million vs. 650 million bushels last month. Large price swings seen as report was released at 7:30 this morning as seen in the 5 second chart below.
Soybeans: As of 7:45 Down 6
On the beans USDA is guessing total production to be 2.634 billion bushels compared to 2.69 billion bushels in August. National yield was estimated at 35.3 compared to 36.1 in August. The demand side had carryout was left unchanged at 115 million bushels as the slight drop in production was offset by a lower export and domestic crush number. Soybeans also seen large swings on the report release this morning as well.
Wheat: As of 7:45 MPLS Down 9, KC Down 13
The wheat was generally neutral as there was no change to total wheat ending stocks from last month. When broken down by class of wheat HRS carryout was down 15 million bushels from last month and HRW increased by 15 million bushels from last month. Item of note: Egypt purchased 235,000 MT of Russian, French and Ukraine wheat yesterday at values significantly cheaper than US offers.