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US Corn and Soybean Futures experienced declines as both grains missed expectations, the United States Department of Agriculture reported.

Following the USDA report, Corn Futures weakened during its trades at the Chicago Mercantile Exchange. The May deliveries of the said commodity indicated a performance at $3.93½ which is a 6½¢ increase during the period.

As for the soybean futures, the commodity finished trades at $10.64 which is 1¼¢ lower if to compare from the previous trades. July deliveries for grain also saw a 1¢ decline to close at $10.73.

Soymeal Futures also experienced declines as well. With a 0.10 drop, the futures recorded a $383.40 during the period which is actually a ton lower if to compare from the preceding session. The deliveries for January closed at 31.84¢ per pound which is 0.26¢ lower from the previous trades.

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Grains are crop-based commodities that are usually traded as well in the market. 

Wheat futures on the other hand, surged 2¢ higher to close at $4.99¼.

In further details, Corn Futures were expected to be at 2.127 billion bushels for the period which is a 225 million bushels drop. Exports for Corn used for ethanol however increased to at least 175 million bushels as the usage for Corn jump unexpectedly.

According to CHS Hedging Market Analyst Brian A. Rydlund, the USDA report for corn was rather friendly. However, it is neutral for soybean futures and bearish for wheat.

“For corn, there were no changes to the supply side of things. Demand for ethanol up 50 million bushels and is acceptable. The corn exports up 175 million bushels, so carryout cut accordingly 225 million bushels to 2.127 billion bushels. The average farm price, for corn set at 3.15-3.55, up 10¢ on low end,”. Rydlund told reports.

“With soybean crush raised 10 million bushels, exports cut 35 million bushels, the U.S. carryout moved up 25 million bushels. The trade thought carryout would go up and both adjustments are reasonable,” Rydlund added further.

Soybeans were expected to rather be unchanged during the period. Investors weren’t expecting a drop but unfortunately, it did.

As for the Soybean production in Argentina, 47 million tons was recorded for the period. If to compare from the previous monthly data, the Southern American Country reported a value of 54 million tons which considerably a decline generally. Argentina’s Corn Production also saw a 3 decline after posting 36 million tons for the period. 

“The report included no good news for wheat. The already big supply numbers didn’t change, exports were cut 25 million bushels, and that made carryout numbers go up 25 million bushels to 1.034 billion bushels. Anytime that we have a billion bushels, we have plenty.” Rylund expressed further.

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