USDA released the February WASDE report on Tuesday morning and it came with some bearish surprises. Corn bulls were met with just a 50 million-bushel reduction in ending stocks to 1.502 billion bushels, when the trade was looking for 1.392 billion bushels. Meantime, soybean stocks were lowered to 120 million which was roughly inline with the pre-report expectations. Wheat stock remained unchanged and also USDA made no changes to South American corn and soybean production numbers. USDA did raise China wheat feeding by 5mmt. Rumors are that the small change in corn stocks will reflect non-China business going elsewhere.
Meantime, with lower grain numbers cattle are turning higher especially in the feeder market. Farm and Ranch Director Jesse Allen has our latest update here: https://lightningstream.com/ajax/GetODFile.ashx?call=MIDWEST&fileid=1150
View the full WASDE Report from USDA here: https://www.usda.gov/oce/commodity/wasde/wasde0221.pdf