Most market analysts were expecting USDA to lower the S. American crop size due to the recent bout of excessive rainfall, and that is precisely what they got. Argentina’s crop was lowered to 56.5 million metric tons.
Also, the total acreage here in the US going to beans, along with what USDA projected to be the average yield were lowered. USDA dropped acreage to 81.4 million acres with yields projected at 46.7 bushels per acre. Total crop size was estimated to be 3.8 billion bushels. Most analysts were looking for a number closer to 3.778 billion. Last year’s crop was 3.929 billion.
It was the ending stocks or carryover that was the big mover however.
This post was published at Trader Dan on May 10, 2016.
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