Daniels Trading Senior Broker and author of Turner’s Take newsletter Craig Turner was quoted in the March 11, 2014 Wall Street Journal article titled “Soybean Futures Drop on USDA Forecast”.
In a closely watched monthly crop report, the U.S. Department of Agriculture estimated that domestic soybean stockpiles would total 145 million bushels on Aug. 31, down from its forecast of 150 million last month. The government cut the figure because export demand for U.S. inventories has been strong, but analysts had expected a steeper cut, to about 141 million bushels.
While exports remain strong, the amount of meal made from soybeans used to feed animals domestically may drop on expectations that a virus that has killed millions of young pigs in 26 states will shrink the size of the U.S. hog herd. That, in turn, will reduce the amount of soybean meal used as animal feed.
The USDA unexpectedly cut its estimate for domestic usage by 10 million bushels from last month, which buoyed its stockpiles forecast.
“Traders were looking for the export numbers to be increased, but didn’t think the crush would come down,” said Craig Turner, a broker at Daniels Trading in Chicago. Crush refers to processing by facilities that turn soybeans into oil and meal.
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