Tidbits
The biggest surprise on yesterday’s monthly USDA S&D was there were no surprises. The only change on the domestic wheat S&D was the national average price for wheat expected to be paid to US farmers this marketing year was lowered 10 cents to $9.10. Perhaps someone should point that out to the wheat futures traders with Spring wheat futures in that $9 area, but KC wheat about a dollar lower and CBOT wheat $2 lower.
The price of corn expected to be paid to farmers was also lowered 10 cents to $6.70 as the corn export projection was lowered 75 million bushels and the US soybean S&D was left perfectly unchanged as was the South American crop production estimates.
Aluísio Pancracio farms near Rio Verde, Goias, Brazil. He was annoyed that the USDA left the Brazil and Argentine bean and corn crops unchanged. His comments after the report: "If the rest of the season will be favorable, which I doubt, we can already count on 25% less production in Argentina and Brazil for soybeans and corn. If the effects of La Ninã continue in this trend, we will have losses between 35 and 40%..."