Trade does not let itself be chased

More soybeans and less wheat and corn. In short, that is the conclusion of the American WASDE report. No reason for big jumps for the markets. Only soybeans were in the red.

Due to the lower production and lower stocks in wheat, the prognosis looks quite good. That says Rabobank in its price outlook. While US closing inventories remain unchanged from last month at a record 1.159 million bushels, the record amount will decline in 2017/18. Compared to the previous year, this is a decrease of 21 percent.

Increasing maize consumption 
Maize prices may still seek higher levels. The Department is reducing U.S. closing stocks for 2016/17 to 2.295 billion bushels due to increased consumption for food, seed and industrial applications. Global closing inventories for 2017/18 are also expected to be nearly 14.5 million tons lower than previous forecasts.

Soybean stocks highest in 10 years
Worse outlook holds for soybeans. It USDA puts the global closing stock for 2016/17 at a record 90.14 million tons. US yields are forecast to be 48 bushels per acre. That is 4.1 bushels less than the previous record year and 2.1 bushels above average. Consumption is likely to climb.

Nevertheless, closing stocks for 2017/18 are high. There is a chance that these will hit the highest level in more than 10 years. The larger acreage and the large harvests in South America play a major role in this.

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