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MINNEAPOLIS GRAIN EXCHANGE ISSUES JULY 9 USDA CROP REPORT REACTION

MINNEAPOLIS GRAIN EXCHANGE ISSUES JULY 9 USDA CROP REPORT REACTION
 MINNEAPOLIS, July 9 /PRNewswire/ -- Following the close of futures trading this afternoon, the United States Department of Agriculture released its supply/demand report for major grains and 1992 U.S. winter wheat production. The USDA reported U.S. ending stocks of soybeans totalled 285 million bushels, corn 1.516 billion bushels and wheat 521 million bushels for 92/93.
 Total 1992 U.S. winter wheat production was reported at 1.574 billion bushels. The breakdown was reported at 942.1 million bushels of hard red winter wheat, 413.3 million bushels of soft red winter wheat and 218.3 million bushels of white winter wheat.
 Minneapolis Grain Exchange futures traders reaction:
 Helen Pound, Goldenberg Hehmeyer & Co., 612-332-6473
 Traders expected today's July supply/demand report to be bearish after the USDA increased old crop stocks and new crop acreage in their June 30 report. But today's report was not quite as dramatically bearish as traders expected.
 Old crop wheat carryover was increased 49 million bushels and new crop wheat carryover was increased 72 million bushels.
 The big surprise was that most of the reduction in usage was the domestic category rather than in exports. In particular, traders were surprised to see hard red spring wheat 1991-92 domestic usage decreased by 31 million bushels giving a hard red spring wheat carryover of 128 million bushels. 1992-93 hard red spring wheat carryover was increased moderately to 148 million bushels.
 David Baxter, Linnco Futures, 612-333-6231
 Tonight's report only confirms what we have been observing for the past several weeks. With a large spring wheat crop expected, DNS is going to have to buy in export demand. This will be accomplished by Minneapolis continuing to loose in value to competing wheats.
 In general, demand remains light for wheat. However, I would expect as the months pass the USDA will become more aggressive when it comes to creating demand. The big problem with this is that as we compete prices have a tendency to work lower. The government can only absorb so much of the subsidies. On a more positive note, world production did not increase. We have a very good chance on seeing a case of classic harvest lows with a slow price appreciation through the marketing year.
 -0- 7/9/92
 /CONTACT: Colleen Smith of Minneapolis Grain Exchange, 612-338-6212/ CO: Minneapolis Grain Exchange ST: Minneapolis IN: FOD SU:


KD-LD -- NY089 -- 8087 07/09/92 18:44 EDT
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Date:Jul 9, 1992
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