USDA’s June World Agricultural Supply and Demand Estimates (WASDE) caused corn prices to hang on to the day’s gains, but spurred soybean prices to tumble Thursday. Prior to the report, the July soybean contract was up 11 cents, but once the report was released, prices took a nosedive, before bouncing back to 8 cents lower just before noon.
USDA painted an optimistic picture for corn in Thursday’s report. The agency reduced both beginning and ending stocks due to increased ethanol use, as well as a boost in corn exports. Those expectations were more than what the trade expected leading into the report. The agency adjusted old crop ending stocks 150 million bushels lower to 1.107 billion bushels. The new crop estimate is now at 1.357 billion.