Author: Michael Ferrari, PhD
VP, Applied Technology & Research
This was issued on Monday morning, 14 Dec:
The USDA’s corn estimate for carryover stocks is still in the 1.5 bln bu range per the December S&D report (up from the previous month), but momentum still supported the upward trend through the end of trading last week. Many analysts are still unclear on crop losses due to inclement late harvest weather in Nov/Dec, so there will still be uncertainty moving the market this week, amid a strengthening US dollar. We are looking at stronger Chinese demand for US soybeans to be a primary factor supporting bean activity this week, so US exports are anticipated to increase, after record levels seen in November. Bean carryover estimates are also down from last month, adding to the upside support. Wheat stocks are looking healthy, and this combined with a significant decrease in planned exports should continue to place some downside pressure on wheat at the start of the trading week. Globally, wheat stocks have rebounded, so domestic stockpiles should continue to remain strong for the coming months.
