USDA Report Day - First 2008 Estimates Spring Crops

[charliep]

Just a note that USDA has released its first 2008 supply demand estimates (world and US).

http://usda.mannlib.cornell.edu/MannUsda/viewDocumentInfo.do?documentID=1194

[charliep]

Will note market reaction and story from today's report.

Corn/feedgrains - Optimistic given forecast tight US corn and continued seeding delays. Corn at contract highs says much of this built and muted response this AM.

Oilseeds - No world S&D on soybeans but US remains tight. Markets up sharply.

Wheat - Expectations for a sharp increase in world production and the beginning of rebuilding stocks. Prices contine on road lower.

[charliep]

Off the title but interesting note today is oil crossed over $125/barrel.

Interesting to note the tie in between biofuel policy and food issues just looking within North America. From a North American consumer side, the decision may be meat in their tummy or bio fuel in their tank. Not a food shortage issue in North America but a decision about how consumers allocate money.