ANALYSIS - Soybeans led a downside price surge in grain futures Monday, in the wake of mostly bearish supply and demand data released by the US Department of Agriculture at midday Monday, writes livestock analyst Jim Wyckoff for ThePoultrySite.
The strong price pressure that drove prices to multi-month lows in corn and soybeans produced fresh technical damage that now hints at more downside price pressure in the near term.
The government grain stocks and acreage reports showed more soybeans in US storage and planted than traders had expected. June 1 soybean stocks came in at 405 million bushels, while planted acreage was reported at a record 84.839 million acres - well above the average trade guess.
Corn futures also fell sharply after the release of the USDA grain stocks report, which showed more corn in storage June 1 than traders had expected.
The surprise extra bushels offset the lower-than-expected planted acreage reported by USDA. US corn planted acres came in at 91.641 million acres, while the trade expected 91.725 million acres.
Wheat futures were solidly lower on spillover pressure from the sharp losses in corn and soybean futures. US wheat stocks on June 1 came in a slightly friendly 8 million bushels lower than expectations. However, US spring wheat plantings of 12.709 million acres were above the average trade guess of 11.86 million acres. All US wheat acres totaled 56.474 million; traders expected 55.818 million US acres planted.
ThePoultrySite News Desk
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