WASDE pushes corn futures down on Thursday

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Corn futures closed lower on Thursday. Prices were weighed down by USDA’s Supply/Demand report. Higher than expected yield forecasts of 166 bu/a, putting production at 14.79 billion bushels was bearish for corn. Old crop stocks were expected to be down 52 million bushels, but instead were raised 50 million to 851 million. New crop ending stocks came in at 1.881 billion bushels versus trade expectations of 1.714 billion. July is 19 3/4 cents lower at $5.87 1/2 and December is 9 1/2 cents lower at $5.07 1/4.

Soybean futures closed higher on Thursday. The market closed up on support from USDA’s bullish Supply/Demand report. Lower than expected ending stocks for both old and new crop. Exports for 2011/12 were raised 25 million bushels to 1.315 billion bushels and 2012/13 are pegged at 1.505 billion. Old crop stocks are forecast at 210 million bushels, down 40 million from April. New crop ending stocks are pegged at 145 million bushels compared to the trade estimate of 164 million. July is 25 cents higher at $14.55 1/4 and November is 25 1/2 cents higher at $13.59.

Wheat futures closed mixed on Thursday. USDA’s Supply/Demand report was mostly bullish for wheat, but spillover pressure from corn weighed on futures. World numbers were lower than expected, with old crop world ending stocks forecast at 197.03 mmt and new crop pegged at 188.13 mmt. U.S. stocks were also forecast lower despite expectations for a large crop, as exports are estimated at 1.15 million bushels for 2012/13. U.S. winter wheat is pegged at 1.694 billion bushels, up 13% from 2011. CBOT July is 1 1/4 cent higher at $6.01 1/4; KCBT July is 1 1/2 cents lower at $6.17 1/2; and MGE July is 3 cents lower at $7.27 1/4.

Cattle Futures closed lower on Thursday. Cattle futures saw slight volatility. Gains from strengthened beef demand were limited by spillover pressure from hog losses. The lack of cash trade so far this week and lower boxed beef prices caused prices to tumble from mid-morning levels. Both choice and select cutouts were more than $1 down. June cattle futures are 65 cents lower at $115.85 and August is 35 cents lower at $118.60.

Lean hog futures closed lower on Thursday. Weaker cash prices and mixed packer margins continued to weigh on the market. The drop in pork cutouts was a bearish factor also. Hog slaughter is predicted to be mostly steady this week between 2.08 and 2.09 million head. The June contract fell 35 cents to $84.50 and July was down 50 cents at $84.77.



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