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PFGBEST analyst comments on Jan. 12 USDA Grain and Oilseed report, bullish to wheat but not corn and beans

Tue Jan 12 09:08:25 2010 EST

By Andrew Johnson Jr., Dow Jones Newswires; 312-347-4604;

CHICAGO (Dow Jones)--Tim Hannagan, analyst PFG Best, on Tuesday's U.S. Department of Agriculture grain and oilseed reports:

"The corn numbers were a surprise, as despite the issue of freezes in October and the many crops left in the field, the government raised yields. In the eyes of the government, the biogenetics of corn seeds allowed the crop to turn out better than Mother Nature would have you believe. The soybean data was neutral to bearish, as the higher production forecast was partially offset by higher demand. Higher world output will add to the negative outlook. The wheat data was bullish across the board, with plantings below the average trade guesses. This opens the door for a tighter situation next marketing year. However, with corn and soybeans seen lower and U.S. and world end[ing] stocks up, its hard to get overly bullish on wheat."

(END) Dow Jones Newswires
01-12-10 0908ET
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