StoneX Group Chief Commodities Economist Arlan Suderman says the bottom line for the markets this week is what happens with the balance sheet from USDA. The results of the USDA’s Crop Production and the World Agriculture Supply and Demand Estimate reports on Friday will set the tone for the markets heading into harvest. “We expect the USDA will make adjustments to supply and demand, but will keep corn stocks above the two billion bushel level and and soybean stocks above the 500 million bushel level. That in itself doesn’t justify significantly higher prices, but the trade will be watching to see how far the USDA will go in tightening the balance sheet, expecting it will do more of the same in October.” If it’s a significant change, Suderman expects a more significant change in October. The reports will be released on Friday at 11 a.m.
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