It seems we only get one or two friendly USDA reports to talk about a year. The July was the report was one of them. However, it’s not as bullish as it might initially seem so expectations for the long term need to be tempered. Allendale commodity broker Greg McBride tells SFN the corn numbers were particularly surprising.

“The old crop eating residual was increased by 75 million bushels. Exports, which we’ve talked about in the past, that we’ve met the USDA school, were also increased by 75 million bushels. So with the slight increase to imports, the old crop ending stocks actually improved by 145 million bushels to 1.87 7 billion. Take that move that 145 over to your beginning stocks for the new crop, and offset it with a production bump, because the increased acres and you see total supply go up by 95 million bushels on the on the new crop.”

While the report isn’t necessarily bullish in the bigger picture, McBride says the friendliness of the report kept things from getting too burdensome in the grain markets.”

“Once again, feed and residual increased by 75 million bushels. Exports increased by 25 million bushels. Total usage goes up by 100 million bushels. That offsets and lowers our end, our new crop ending stocks to 2.097 so you’re talking about 2.1 billion in carry out when the average guess on this report was 2.3 so this comes out as a friendly report and gets everybody is going to get everybody excited. It doesn’t necessarily change the big picture, but it does help to keep us from going the other way and making this thing even more burden.”

McBride says the market prices are at the mercy of the funds right now, and the funds are at record short levels in the corn and soybean contracts, but if they lighten up a bit, it might be a good time to make some sales.

“The thing that I would caution people about is, you know, you look at the at the corn, yes, it’s 2.1 billion in carry out. You look at the beans, it’s still burdensome at 435 million. But the thing that that keeps us, keeps us a little bit grounded here and keeps us from really getting excited, is that they increased wheat ending stocks by almost 100 million bushels, and they increase overall wheat production by 125 almost 130 million bushels. So overall, that wheat being a feed drain, is going to be in competition with the corn, and gonna hold us back from seeing any major gains there’s, like I said, there’s nothing that’s really in this market with the funds in charge like this, but it does give us a reason to be a little bit short term hopeful.”

McBride adds that sellers should take advantage of any rallies that might happen here soon, especially when it comes to weather.

“Some of the weather situation, as we go into pollination, could give us a reason to be friendly. But for right now, it’s look for these look for these rallies to to give you an opportunity to make some sales. Give you the the exact numbers as far as where to make those sales. But that’s I would look for, for some minor gains over the next week or two to to try and get some, get some sales in place as we come off of these, these most recent lows made here today.”