Morning Market Review by Bryce Knorr
Morning Price Trends
Corn: Up 22 to 24
Soybeans: Up 22 to 24
Wheat:Up 15 to 18
Futures are trading mostly quietly higher this morning, ahead of key USDA supply and demand reports out at 7:30 that are likely to show sharply lower corn and soybean inventories in the year ahead. The pit opens 10 minutes before the report is released, assuring plenty of volume in the early going.
Corn prices appear posed for volatility today. USDA normally doesn’t make major yield adjustments in its July report, waiting until its August survey data is compiled. But the trade expects the agency to at least acknowledge the magnitude of the 2012 drought, knocking yields down by at least 10 to 15 bpa. Overall 2012 ending stocks could be more than 600 million bushels lower, with our guess at 1.25 billion.