Agriculture Report: Bearish Trends In Corn, Soybeans, Wheat Continue After USDA Supply And Demand Estimates

December 09, 2011

The USDA’s latest data didn’t stop the downward trend in the grain complex.

 

Today’s World Supply and Demand Estimates report was seen as bearish overall, further reinforcing the current negative trend. Grains maintained their bearish trend over the past month, as corn, wheat and soybeans slipped to multimonth lows.

For corn, the news was relatively neutral. Season-ending supplies of the commodity are expected to remain tight at 848 million bushels, according to the United States Department of Agriculture’s latest projection. That’s only a bit higher than last month’s projection of 843 million, which was also the consensus expectation of analysts.

 

 

The forecast for corn production is still 12.31 billion bushels, while yields are still expected to be 146.7 bushels/acre.

 

 

 

Nevertheless, weakness in other grains pushed corn prices down to as low as $5.70/bushel this week—the lowest level in one year. However, that’s only marginally below the October low near $5.72, so corn still has a chance to potentially salvage that support level.

 

 

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