We had a very busy day in the trade on Thursday with multiple data sets being released, culminating of course with the May World Agriculture and Supply Demand Estimates from USDA. Many viewed the report as neutral for corn and soybeans while bearish for the wheat market as 2022-23 ending stocks of 267 mmt for wheat were below expectations, with global production forecast to fall year-over-year while global trade is forecast to reach a record high. Combine that with hot and dry weather in the Southern Plains and planting issues in the Northern Plains; that allowed strong money flow into wheat on Thursday.
Corn and soybeans ended up firm to moderately higher after the report which also saw USDA lower the U.S. projected national corn yield from 181 bu/acre to 177 bu/acre, surprising many in the trade. We saw marketing year lows for corn, soybeans and wheat export sales while we saw a marketing year high for beef. Yet, livestock markets were under pressure today and couldn’t find strength.
We also saw changes to South American production from USDA and CONAB today while there was more inflation data to try and act as a headwind to the market; although the bullish WASDE took over later in the day.
Farm and Ranch Director Jesse Allen has our closing report: https://lightningstream.com/ajax/GetODFile.ashx?call=MIDWEST&fileid=1406
Also, more analysis with Bryan Doherty of Total Farm Marketing and Jesse Allen on today’s Market Talk below: