Closing Comments; Friday, February 8th, 2019
MaxYield Cooperative - SETZ - Fri Feb 08, 2:14PM CST

All focus today was on the largely anticipated USDA reports.

Domestic corn production was reduced more than trade was expecting. The corn yield was reported at 176.4 bushels per acre, down 2 bushels from the December report. The yield reduction along with slightly less harvested acres brought total corn production to 14.420 billion bushels. Under the average trade estimate by 112 million bushels. Domestic corn demand was also trimmed more than expected. Feed usage was cut by 125 million bushels, 40 million bushel reduction to seed/industrial usage, and ethanol usage was down 25 million bushels. Ending stocks now total 1.735 billion bushels, 46 million bushels below the December’s release, yet larger than was trade was expecting by 27 million bushels.

The soybean yield was reported slightly below trade expectations at 51.6 bushels per acre, down bushel per acre from December. That along with a reduction to harvested acres brings total soybean production to 4.544 billion bushels, slightly below the average trade estimate. Soybean usage saw a net reduction of 15 million bushels, as exports were trimmed as expected but an increase to crush demand was made. Carryout was reported at 910 million bushels, 45 million less than December and 16 million bushels below the average trade estimate.

World soybean carryout came in lower than trade was expecting at 106.7 MMT, which was nearly 6 MMT below the average trade guess. The uncertainly of US and Chinese trade resolution limiting any reactions. World corn carryout was reported higher than estimates but other world figures were in line with expectations.

March corn finished today’s session 2 cents lower at $3.74 , March soybeans closed 1 cents higher at $9.14 , and March Chicago wheat closed 4 cents higher at $5.17 .


Market Commentary provided by:

Karl Setzer Grain Commentary