MN Commodity Broker Bullish News Hidden In USDA Report
On Thursday the USDA Released the August Supply Demand Report. Shortly after the Report we saw soybeans trade up 15 cents and corn was up about 35 cents. By the close beans were about unchanged and corn was well off the daily highs too. The USDA cut the U.S. national bean yield by .8 bushels an acre but the market was quite surprised when the corn yield was slashed almost 5 bushel an acre.
The Report would have been really bullish if the USDA had not cut world demand for grain in the Report. In the Weekly Ag Market Update Gordy Kralovetz Commodity Broker with Chiodo Commodities wondered how the USDA could make some of their assumptions?
For example the USDA said Kenya would import 12 percent less wheat because of weather problems in the Ukraine. When the drought was starting to develop in the U.S analysts were talking about the Ukraine and that they would produce enough grain to make up for what was lost here. Plus, if Kenya cannot access wheat from the Ukraine isn't that demand that would shift somewhere else in the world, like maybe here?
It does not seem logical that the Kenya government would just let their people starve instead of importing grain from another source? Click on the link and listen to Gordy discuss the grain and livestock markets last week.