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AUGUST 11, 1993, USDA CROP REPORT REACTION PROVIDED BY: MINNEAPOLIS GRAIN EXCHANGE

 MINNEAPOLIS, Aug. 11 /PRNewswire/ -- Following the close of the futures trading this afternoon, the United States Department of Agriculture released its 1992-93 ending stock and world crop production reports:
 USDA 1993 U.S. soybean production was reported at 1.902 billion bushels while the corn production was reported at 7.423 billion bushels. All wheat production came in at 2.556 billion bushels.
 1993-94 ending stocks figures for major grains were estimated at: soybeans 190 million bushels, corn 1.408 billion bushels and wheat 696 million bushels.
 Reaction By Futures Traders From the Minneapolis Grain Exchange:
 David Baxter, Independent Trader, 612-333-6231
 There was not a lot of surprise to today's USDA Crop Report. The reduction in production was offset by a lowering of exports. The increase in feed usage is somewhat questionable given current price values. We will continue to see subtle changes in inter and intra market spreads but any substantial gains in the price of futures will have to be driven by demand. The issue of quality has been and will continue to be driven by the basis. The world wheat outlook is also a negative factor that will continue to pressure the market.
 Wesley Oja, Country Hedging, Inc., 612-641-6550
 The Spring Wheat production number was slightly lower than last month but still higher than many traders anticipated. The USDA's White Wheat production number may still be understated. U.S. all wheat production appeared to be right on the trade's guesses, though. Exports were lowered and domestic usage was increased, probably in response to decreasing quality in the Hard Red Wheat crop.
 World Wheat production appears to be adequate. This should limit upside potential in world wheat values. Though we need to remember that if the USDA decides to use the E.E.P. aggressively, domestic values can still appreciate.
 At present, the more important question is quality and protein content. In the short term, there is more risk in bases than in futures. Expect to see this continue until the market has seen enough new crop Spring Wheat to establish a fair value.
 Helen Pound, Goldenberg, Hehmeyer & Co., 612-332-6473
 The USDA monthly Supply/Demand report for August has been widely anticipated to reflect the impact of this year's horrendous flooding in the Midwest. Now that updated acreage and yield indications have been released, the focus of the futures market should be on the potential of an early frost to further reduce corn, bean and Canadian wheat yields. This should keep price action quite volatile.
 As expected, wheat production was reduced by about 50 million bushels. This has lead analysts to characterize the wheat report as neutral. It appears that the pace of new wheat export business and the quality of the new crop Spring Wheat will have more influence on wheat prices than will this report.
 -0- 8/11/93
 /CONTACT: Albert Maruggi, marketing and public relations director of The Minneapolis Grain Exchange, 612-338-6212/


CO: Minneapolis Grain Exchange ST: Minnesota IN: AGR SU:

DB -- MN013 -- 1914 08/11/93 18:19 EDT
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