Looking for bearish news but market reaction is key

Overnight- Grain and oil seeds are higher with wheat leading the way.

We will get a look at new crop estimates from the USDA later this morning.

We expect high yields and large stocks to use ratios.

Trendline yields and intended acres with usage similar to the USDA Outlook numbers.

The new crop corn carryout will around 2.4 billion bushels and soybeans around 390 million bushels.

The USDA has some room to come down on Brazilian corn and soybeans along with Argentina corn.

Most are looking for the USDA to do their usual kick the can and wait for more data, but this could be the surprise for the market.

Bottomline

USDA is planting a flag in the sand and will work from these numbers. We need to see how the market reacts because everyone is expecting it. Do not be afraid to throw in some offers for new crop sales at levels you would like to see filled. NFC Grain Comments Options -new (47)