USDA crop report released at 7:30 am today, market calls are 10 - 15 higher for corn and soybeans.
The big news in today's report is on increased corn demand for ethanol production. USDA increased the 2009/10 crop ethanol usage to 4.55 bbu. up from 4.4 bbu. Total corn demand is forecast up 135 incorporating a slight reduction in corn feed usage. For the 2010/11 crop year USDA increased the ethanol portion of corn demand by 100 mbu to 4.7 bbu.
World corn numbers were uneventful so the net impact of the reports today is a reduced U.S. corn carryout estimate to 1.6 bbu for this year and 1.573 bbu for next year which is a 245 mbu reduction from the May estimate. USDA did not change production estimates for 2010 corn or soybeans this month.
The soybean report didn't give a lot to trade on as soybean crush for meal/oil was increased 5 mbu but no other changes were noted, ending stocks are now estimated at 185 mbu. The world soybean numbers didn't change much either with a .6 million ton reduction in the Chinese soybean crop the only adjustment of any significance.
In other news the weekly export sales report showed great improvement over last week for corn and soybeans with corn sales at 40.1 and 5.6 for old and new crop respectively and soybeans at 15.5 and 4.8 mbu. Both commodities weekly sales figures were above expectations and should lend to the higher grain market calls.
Phil Farrell
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