HardAssetsInvestor

Written by Sumit Roy  |

February 09, 2012

Wheat Tumbles After USDA Projects Record Stocks, Soybeans Holds Near Resistance

Details

Corn, soybeans and wheat all fell after the latest USDA data.

The latest supply and demand forecasts from the United States Department of Agriculture were interpreted as bearish by markets, as corn, soybeans and wheat all fell. Nevertheless, the grains are facing very different outlooks.

For corn, the USDA is now projecting that U.S. corn stocks will total 800 million bushels before the start of the next harvest. That matched what analysts were predicting, but is down from last month’s 846 million bushel projection.

Total U.S. corn production and yields per acre were steady at 12.358 billion bushels and 147.2 bushels per acre, respectively.

Overall, the corn market remains strong, as evidenced by extremely low stocks and strong prices. From a technical perspective, the market remains range-bound between $5.75 and $6.55.