Leffler Finds USDA Reports Lack Bullish News to Support Higher PricesThu, 09 Apr 2015 16:52:32 CDT
Minor adjustments were made to the U.S. and global ending stocks estimates for wheat, corn and soybeans. On Thursday, the U.S. Department of Agriculture released the U.S. ending stocks report and the latest World Agricultural Supply and Demand Estimates (WASDE) report. Tom Leffler of Leffler Commodities said the reports were mostly neutral and lacked anything bullish to support commodity prices.
Radio Oklahoma Network's Leslie Smith got reaction from Leffler on the two reports. Click or tap on the LISTENBAR below to listen to the full interview.
In the U.S. ending stocks report, Leffler said it was bullish for wheat, corn and soybeans. U.S. corn ending stocks came in at 1.827 billion bushels. This was less than trade expectations, but an increase over last month by 50 million bushels. U.S. soybean ending stocks came in at 370 million bushels, down 15 million bushels from the March report. U.S. wheat ending stock were pegged at 684 million bushels was down seven million bushels from last month. The U.S. milo ending stocks came in 18 million bushels. Leffler said U.S. milo exports are up over 65 percent over a year ago.
In the WASDE report, Leffler said the global production and stocks numbers were adjusted slightly. In looking at global wheat production, he said USDA increased the European Union, Former Soviet Union and Russia wheat production numbers. Leffler said world wheat stocks were lowered by 500,000 metric ton to 197.21.
Global corn production increased with the U.S. having the largest increase. USDA also raised Argentina's corn production estimate by 50,000 metric ton, while South Africa's production was lowered by 20,000 metric ton. Overall corn stocks were pegged higher than trade expectations. Leffler said world corn ending stocks increased by 3.2 million to 188.46 million metric ton.
South America's soybean production was increased. Leffler said USDA raised Argentina's production by one million Metric ton to 57 million metric ton and Brazil's production estimate was unchanged at 94.5 million metric ton. Global soybean ending stocks were raised slightly to 89.6.
"So the bottom-line is, we just saw tweeking of the world numbers, tweeking of the U.S. numbers, really nothing to get overly excited about," Leffler said. "We are still going to be waiting down the road for more information and it might be coming from Mother Nature next."
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