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USDA Grain Stocks Report

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One of the more widely watched reports in the commodities markets is the USDA Grain Stocks Report. It is released quarterly (around January 11, March 31, June 30 and September 30) and contains the latest data on the amount of grain inventories in the U.S.

Commodity traders will be most interested in the amount of soybean, corn and wheat stocks. The grain stocks report separates the inventories by state and the amounts held on and off of farms.

Key Points in Report for Commodity Traders

Commodities prices are primarily determined by supply and demand. Commodity traders will first want to discover the amount of inventories that analysts are predicting prior to the report. This will be the biggest factor for price movement after the report is released. You should be able to get these estimates from your commodity broker or you can find them on most wire services – Dow Jones, Reuters or Bloomberg.

If the stocks number comes in lower than the average guesses, the commodity will likely rise. Oppositely, if the stocks come in higher than expected, the commodity will probably drop in price. The greater the difference between the estimates and the actual report numbers, the more you can expect the price to move. Other USDA reports are normally released on the same day as the grain stocks report, so make sure you monitor those also.

You can find the latest Grain Stocks report on the USDA’s website at: http://usda.mannlib.cornell.edu/MannUsda/viewDocumentInfo.do?documentID=1079

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