The big message coming out of last week’s USDA reports is that it’s an important time for producers to be adhering to their crop-marketing strategy, Bryan Doherty of Stewart Peterson tells the U.S. Farm Report Market Roundtable.
"The bigger overriding picture, though, is we’re kind of at a critical zone for price for producers, especially those who haven’t had the fortune to sell corn early on, yet they’ve got a pretty good-looking crop right now," Doherty says.
He continues: "So I think that the big thing out of this week—a lot of volatility in the market may be telling us it’s trying to put a low, it’s worried about potential frost, cold weather, those kinds of things—that we probably look in on this USDA report and say, ‘Hey, we’re not going to probably look at any major, major production surprises, at least as upward from here.’ It could creep higher. But ultimately, producers need to prepare for corn to move down another 75 cents or take off and just run if this cold weather becomes a concern."
Meanwhile, USDA’s survey of prevented planting acres probably isn’t the last word on the situation, says Jim Bower of Bower Trading.
"There’s still going to be somewhat of a question," Bower says. "It may not even be answered up through October about what the final planted acreage is. So when you combine a question of planted acreage and a little bit more of a question on yield compared to what we were at, say, three or four weeks ago because of the dryness situation, there’s going to be some adjustment in this crop situation."
Click the play buttons on the two videos below to watch the complete U.S. Farm Report: Market Roundtable: