Sunrise Post-Report Commentary: 

Corn: In general, we were given the low volatility report that was expected. Feed usage was increased by 25 million bushels along with corn for ethanol. Exports and industrial usage was left as it. The carryout was reduced by the changes to 2.122 billion bushels. Yes, it was a reduction, but we still have burdensome stocks. Corn is currently trading down 3-4 cents while I write this note. Weather and planting progress will be in the driver’s seat as we move forward from here. South American production estimates were right at the market expectations to slightly larger. No surprises there.

Soybeans: On the soybean front, we saw the ending stocks increased by 25 million bushels. Imports were reduced by 5 million bushels, but the reduction in exports to 1.700 billion bushels and the reduction to residual usage to 13 million bushels more than offset the lack of imports and get us to the 340 million bushel carryout for the beans. In South America, the USDA did not reduce their Brazilian soy production estimate of 155 million tons, while CONAB reduced the crop size to 146.5 million tons. We will know who is right in another 60 days, but for now the trade just doesn’t seem to care about the discrepancy. At some point it will matter, but today is not that day. The soy crop in Argentina came in right at market expectations, 50 million tons. 

Scott Frey

VicePresident of Grain  

Sunrise Cooperative