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Grains Mostly Weaker in Aftermath of USDA Supply and Demand Report

10 December 2013
Jim Wyckoff Commentary -  TheCropSite

ANALYSIS - Corn futures moved lower at midday Tuesday, after seeing a slight bounce following a mildly bullish USDA supply and demand report for December.

The Ag Department lowered 2013-14 corn carryover stocks to 1.792 billion bushels. Pre-report trade expectations were for a 1.861 billion-bushel figure. However, the latest number is still a large increase over the 2012-13 carryover of 824 million bushels.

Soybean futures were trading near unchanged after the USDA data that showed the government lowering its 2013-14 soybean carryover to 150 million bushels, which was a bit lower than the pre-report estimates.

Wheat futures sold off and hit new contract lows on news USDA increased total world wheat stocks more than the trade expected. USDA pegged total world wheat stocks at 182.78 million metric tons, which is higher than pre-report expectations of 178.8 million metric tons. USDA forecast the
2013-14 U.S. wheat carryover at 575 million bushels, which is also significantly higher than pre-report expectations.

TheMeatSite News Desk

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Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%): 1. Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you.

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