OCT USDA Report

Friday's USDA Grain Numbers Run down

Corn
Production 13018 up from 12954 -Bearish
Total Supply 14702 up from 14660 -Bearish
Total Use 13030 up from 13025 -Bullish
Ending Stocks 1672 up from 1635 -Bearish
Stocks/Use 12.83% up from 12.55% -Bearish

Stock to Use ratios indicates a tight supply situation. This looks like it will be the 2nd largest crop in at least ten years, but this will also be the 2nd year in a row were usage is greater than our production. I think the future looks very bright for the corn market long term. The last time we saw a year over year usage outpace production was 2001-2003 and parts of 2004. Those years say a 50% increase in price. If we were to apply those same rules, 7 dollar plus is a reasonable target next year.

Beans

Production 3250 up from 3245 - Bearish
Total Supply 3398 up from 3366 - Bearish
Total Use 3169 up from 3145 - Bullish
Ending Stocks 230 up from 220 - Bearish
Stock/Use 7.26% up from 7% - Bearish

Stocks to Use ratios indicates a very tight supply situation. Although with such tight ratios the funamental picture is slightly less bullish than corn. Production is estimated to keep pace of usage.