We are seeing major pull back in the markets following the February supply and demand report.
With the major grains being at or slightly above their target, investors long in the market are liquidating their positions.
Corn dropped nearly a dime to 546'5, soybeans fell more than 17 cents to 1384'2, and wheat is down 9'6 at 639'6.
Commodity market analysts usually do not expect much from the February WASDE report. USDA economists say that yesterday’s updatewas no shocker, but there are important market implications.
“We see a little bit of an increase in corn exports, a little bit of an increase in soybean exports, a little bit of an increase in hog prices on good demand,” USDA Chief Economist Seth Meyer states.
Some traders expected South American production to be lowered but Meyer says that there was not enough evidence to make those changes.