Glacier FarmMedia COVID-19 & the Farm

CBOT weekly outlook: USDA report bullish for corn, soy

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Detail from the front of the CBOT building in Chicago. (Vito Palmisano/iStock/Getty Images)

MarketsFarm — Wednesday’s report from the U.S. Department of Agriculture (USDA) was a bullish influence for commodities on the Chicago Board of Trade (CBOT).

USDA’s quarterly stocks report showed corn and soybean stocks were significantly lower than expected, totalling 1.995 billion bushels and 523 million bushels respectively. Corn stocks came in about 250 million bushels lower than trade expectations, and soybean stocks were about 50 million bushels lower.

“That was friendly for corn, and markets are reacting,” Steve Georgy of Allendale Inc. said.

The December corn contract was up by 14 cents on the day, closing at $3.78 per bushel (all figures US$). Nearby soybeans were up by 29 cents at $10.21 per bushel.

End-of-month positioning was also a feature in trading, with long funds supporting the rally.

“It’s the end of the month and the end of the quarter, so that’s helping support that position,” Georgy said.

Harvest pressure is expected to put a damper on prices in the coming weeks, as early harvest activity indicates strong yields.

“We’ll maybe get a bit of harvest pressure with the highs we’ve got,” said Georgy.

— Marlo Glass reports for MarketsFarm from Winnipeg.

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