The grain trade is pre-positioning ahead of today’s USDA Supply and Demand report. Total Farm Marketing Senior Market Advisor Naomi Blohm says we could be in for a wild ride. “The surprise friendly quarterly stocks report is still setting the stage for this October USDA report. We’re expecting to see a reduction of ending stocks for the new crop, but then, the question becomes is the USDA going to cut yields and will they increase demand? Does this give us the fuel to ignite the markets higher or do we receive a neutral report and see profit taking set in? It will be wild and exciting as the clock ticks 11 o’clock.” If the report is neutral and prices slip lower, the market will focus back to harvest pace, China demand and election jitters,” says Blohm. “If the report is friendly, then the focus will also be on watching weather at every turn.”
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