Chicago grain and oilseed futures were down hard on Monday, following the release of the USDA’s much-anticipated August supply-demand update.
The news was the most bearish for corn, with upward revisions in projected 2019 yields and production vastly overshadowing relatively small reductions in estimated planted and harvested area. In the end, old-crop corn ending stocks were revised 20 million bu higher from last month to 2.36 billion bu, while new-crop ending stocks were bumped 171 million bu higher to 2.18 billion. September and December corn both plummeted 25 cents to end at $3.85 ¼ and $3.92 ¾.
Wheat was caught in the corn downdraft, with additional pressure coming from an upward revision in the 2019 U.S. all wheat production estimate – up 59 million bu from July to 1.98 billion bu. September Chicago wheat tumbled 27 ¾ cents to $4.71 ¾, September Kansas City lost 24 ¾ cents to $3.92 ¼ and September Minneapolis was down 10 ½ cents to $5.09 ¼.
The USDA supply-demand wasn’t as bearish for soybeans, with planted/harvested area revised lower from last month, along with production and ending stocks. However, new- and old-crop soybean supplies still remain heavy on a historical basis and the losses in corn and soybeans spilled over to pressure. September soybeans fell 12 ¼ cents to $8.66 ¾ and November was down 12 ½ cents to $8.79 ¼.
Live cattle futures fell the daily limit today, while lean hogs were mainly lower.
Source: DePutter Publishing Ltd.
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