USDA Quarterly Grain Stocks Report Sept 30th 2010

Once again the big story in this version of the September Quarterly Grain Stocks report released by the USDA was corn. The USDA continues to manipulate numbers throwing the first bearish news at the corn market in quite some time.

• The market was looking for ending stocks to be 1.410 billion bushels but they came in at 1.707 that's 300 million bushels over the average trade guess.
• Looking at the trading guess range, the highest estimate came in at 1.489 billion bushels, so this number is astonishing.
• Stocks for corn are up 2% vs. last year. Stocks on farm is down 20% from last year mainly due to the pour quality causing farmers to clear storage
• off farm stocks were up 15% from a year ago
• . June - August disappearance was relatively unchanged from last year which is strong. This figure is definitely bearish, but its hard to conclude just yet as this figure could include part of this years corn harvest as harvest came off much earlier than expected.

What are your thoughts?