USDA Crop Numbers Bearish
USDA's September crop estimates of corn and soybean futures are viewed as bearish for futures markets as they were above most trade expectations.
USDA pegged corn production at 9.238 billion bushels, down 28 million from its Aug. 1 estimate, but above the range of trade expectations.
USDA put the soybean crop at 2.834 billion bushels, down 33 million from its Aug. 1 estimate, but near the high end of the range of trade estimates.
We should remember, that while these numbers are bearish relative to market expectations, they are fundamentally bullish in the long run because they do represent lower supplies.
USDA lowered its old-crop and new-crop carryout estimates and raised its expected range for the 2001-2002 average price by a nickel per bushel for both corn and soybeans.
Editors note: Richard Brock, Soybean Digest's Marketing Editor, is president of Brock Associates, a farm market advisory firm, and publisher of The Brock Report.
To see more market perspectives, visit Brock's Web site at www.brockreport.com