The USDA will release its February Supply/Demand and crop production reports tomorrow. Analysts like Zaner Ag Hedge Group Chief Market Strategist Ted Seifried want to see how the USDA deals with China’s demand in the report. There are still lots of unknowns following the signing of the phase one trade deal. “It sounds like it’s going to be a very measured thing, meaning they may pick away at things until actual sales develop,” says Seifried. “Until we actually see sales to China coming through, getting an idea of which commodities they’ll favor heavily, it’s hard to make changes.” Other than that, Total Farm Marketing Senior Market Advisor Bryan Doherty says not much new is expected from the USDA. “We’re just at that time of the year where we’re far enough removed from harvest that we don’t expect a lot of adjustments and we’re far enough away from planting in the Northern Hemisphere for it to not have much impact either. Though I would expect to see a slight upgrade to the Southern Hemisphere crop.”
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