Traders Await Tomorrow's USDA Report
Jan 11, 2012
· Grains lower overnight in sympathy with outside markets ; Rains in South America certainly not helping the bulls this morning; Corn bear spreading to start the day; Some longs may look to liquidate ahead of tomorrow’s USDA report
· Analysts not looking for much change in the production numbers from the USDA tomorrow, however the demand number remain a much bigger question, some believe more corn has been used domestically as a result of lower prices
· Most believe that the potential for top-end yields for the S. American corn/soy crop has been eliminated, however the story may be slightly overblown
· Ukraine grain harvest may be as low as 44-46mmt vs 56.4 last year
Look for tomorrow’s USDA report for our next sense of market direction. Producers, call the office today to discuss your option as far as hedges again old crop inventory and unpriced new production. Looking forward, corn producers should be terrified at the prospect of 94-95 million acres of planted corn this spring from a price perspective. Give me a call to discuss how you can protect next year’s production without necessarily locking in a flat price.
As always, call the office with questions or concerns.