Weekly grain report

Byron Behne watches the grain markets for the Odessa Union Warehouse.

11/8/12: There’s another monthly supply-and-demand report out tomorrow, and it seems like it will be hard to be anything but bearish. Wheat and corn exports have been coming in far below what we need on a weekly basis to meet the USDA’s projections as buyers seem to be sourcing from everyone but the U.S. for the time being. World wheat prices have risen during the week, which has given a boost to prices here. However, we’ll need increased demand to make the gains stick. Soybeans have been flying off the shelf. However, most analysts expect a production increase on this report to offset the higher export pace.

11/9/12: The supply-and-demand report was bearish for everything, increasing not only U.S. ending stocks for all three major ag commodities but world ending-stocks as well. An increase in stocks of U.S. grains was certainly not unexpected. However, the increases still exceeded the average guess of most analysts. The fact that world wheat supplies increased was very surprising, as cuts to production were outweighed by cuts to usage.