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JANUARY 12 USDA CROP REPORT REACTION PROVIDED BY MINNEAPOLIS GRAIN EXCHANGE

 MINNEAPOLIS, MN., Jan. 12 /PRNewswire/ -- Following the close of futures trading this afternoon, the United States Department of Agriculture released its supply/demand, production, stocks and planting reports. USDA grain stocks as of Dec. 1, were reported at: soybeans 1.834 billion, corn 7.902 billion and wheat 1.589 billion bushels. Estimates for 1992 soybean and grain production were reported at: soybeans 2.197 billion and corn 9.479 billion bushels.
 The USDA 1993 winter wheat seedings total was 51.506 million acres. While USDA 1992-93 ending stocks were: soybeans .355 billion, corn 2.247 billion and wheat .486 billion bushels.
 Minneapolis Grain Exchange futures traders reaction:
 Helen Pound, Goldenberg, Hehmeyer & Co., 612-333-6473
 Today's USDA Winter Wheat seeding estimate of 51.5 million acres was surprisingly lower than analysts' expectations. Because farmers participating in government programs were allowed to plant 5 percent more acres this year than last year, most analysts expected winter wheat seedings to be 5 to 10 percent higher than last year. Today's USDA estimate is 101 percent of last year's planted acreage.
 Another big surprise came in the USDA wheat export projections. Total wheat export estimates were increased 50 million bushels to 1.35 billion bushels. Most of the increase came in the Spring Wheat class. Since the August supply/demand report, the USDA has increased export projections for Spring Wheat 115 million bushels, resulting in a major change in Spring Wheat market psychology. At harvest last fall, the USDA showed the Spring Wheat class to have particularly burdensome supplies -- carryover as a percent of usage was 45 percent. But with increasing Spring Wheat export business, today's Jan. carryover versus usage balance has declined to 24 percent - indicating a more balanced supply/demand situation.
 David Baxter, Linnco Futures, 612-333-6231
 Traders initial response to the USDA report was bullish wheat, bearish corn and beans. Winter Wheat seedings was 51.5 million acres vs. 53.5 million acres average analysts' estimate and 51.057 million acres a year ago. This appears to be the bullish component of the wheat report. What probably will be more of a factor in enhancing new crop winter wheat values is current traders positions and that is long old crop, short new crop.
 The USDA continues to have an optimistic look towards spring wheat exports as projections continue to increase with each report. In most respects, the market is well aware of this situation as is evident with current strong basis levels and board inverses.
 As discussed previously, producers should take advantage of these price levels. If higher prices remain a concern, buying a call option would be a good method of price protection.
 -0- 1/12/93
 /CONTACT: Colleen Smith, public relations director of Minneapolis Grain Exchange, 612-338-6212/


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

KD-KW -- NY127 -- 4249 01/12/93 18:28 EST
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Date:Jan 12, 1993
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