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| Grains scream higher after the USDA report. The report wasn’t extremely bullish. It was friendly for corn and wheat. For soybeans it was actually decently bearish, yet the market shook it off and rallied.
This was something we had been mentioning the last few days. All of this bearishness was already priced into the market the last few days. With record yields as expected.
Corn carryout was friendly. As the year over year gains were a lot less than some feared they could’ve been. A 2.1 billion bushel carryout is by no means bullish, but it is nowhere near as bearish as a 2.5 billion one which was where the February Ag Outlook had us at.
The world carryout for corn and wheat was also friendly. Both came in 4-5 million tons below the estimates. Beans on the other hand were negative, coming in 8 million above the estimates.
The South America numbers were non existent. USDA of course didn’t make any major cuts. But they are projecting next years Brazil crop to be a huge record 169 vs this years 154.
Yet despite this, soybeans rallied along side corn and wheat.
When the market gets bearish news, but trades higher. I look at that as a trigger that we are going to see more upside.
Similar to the trigger to know the highs were in last year. Last year we made our highs when we got this super bullish drought monitor, yet the market sold off. A trigger saying the top is in and we are going lower.
So I look for these markets to continue higher. The market already has record yields priced in. We all know 181 isn’t happening.
The funds should look to continue to want to cover. The charts say buy. The next month or so should provide some amazing opportunities as we head into all of the uncertainty of the growing season…
Listen to todays audio where we go over why we think this report confirms higher price action ahead
Listen Here: https://txt.so/gkPJN2
USDA Numbers Below*
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Attachments
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 8F211178-DFFA-457E-8EDA-E3DB0BA1CCA9 (full).jpeg (49KB - 73 downloads)
0E6BFE31-5FC1-45BD-898C-BCB82BDD9FC4 (full).jpeg (80KB - 73 downloads)
77B0E8A1-06C3-44E4-874F-2671C9820E03 (full).jpeg (76KB - 83 downloads)
4DA7BFE3-6C7B-4DBC-A77E-1354064F0169 (full).jpeg (59KB - 75 downloads)
040BB80D-56B7-4755-843A-BA2FD203D4B9 (full).jpeg (55KB - 81 downloads)
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USDA not super bullish but price action confirms higher prices - Market comments
