Chicago Agriculture Commodities Finished Lower

Chicago Agriculture Commodities Finished Lower


Chicago Board of Trade (CBOT) grains futures finished lower Wednesday after the US Department of Agriculture(USDA) raised its domestic harvest estimates from already record-high levels.

The most active Corn contract for December delivery fell 13.5 cents, or 3.81%, to 3.4075 bu.

December Wheat delivery dropped 8.5 cents, or 2.05%, to 4.0675 bu.

January Soybean fell 20.25 cents, or 2.00%, to 9.91 bu.

In a monthly report, the USDA said farmers will grow 15.226-B bu of Corn this year, with an average yield of 175.3 BPA. That was up from its October forecast for 15.057-B bu. and an average yield of 173.4 BPA.

The USDA estimated the Soybean crop at 4.361-B bu, up 92-M bu from its October outlook. The US government raised its Soybean yield estimate to 52.5 BPA from 51.4 BPA.

The USDA also unexpectedly raised its MY 2016-17 Corn ending stocks outlook to 2.403-B bu, which would be the 5th biggest ever, from 2.320-B.

The US agency increased its Soybean ending stocks forecast to 480-M bu, 60-M bu higher than the average of agriculture analysts’ estimates and up from its October estimate of 395-M bu. If realized, Soybean ending stocks would be the 3rd highest on record.

The USDA Report is Bearish, but the markets are digesting them as well as possible.

The USDA’s Corn, Wheat, and Soybean ending stocks estimates are all Bearish. Option volatility is getting hit. Pretty much everything across the board was mildly Bearish Wednesday.

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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