USDA released with unexpected estimates
October 19, 2017
The latest USDA World Agricultural Supply and Demand report, released last Thursday night (19th), caught the trade leaning the wrong way, lowering yields and carryout more than expected while leaving production and demand unchanged. This helped soybean futures to rally to a two month high, closing up 26.75USc/bu.
US wheat futures posted mixed trade ahead of the report with a lower close. Despite the winter wheat markets trying to gain upward traction on post report strength in beans, increased domestic and global supply projections won out in the end, closing down 2.75USc/bu. Speculative buying and a continued reaction to last week’s report saw a small rise in values earlier this week, however this seems to have correct itself after decreasing again mid-week.