Agriculture is having a big couple of days with the presidential election and the USDA releasing WASDE on Wednesday. Several groups are predicting an increase in the soybean yield.
Arlan Suderman of FC Stone thinks there are two questions to ask before the report is released:
- Will demand increase enough to offset the increase in production?
- What will be the size of the increase in production?
He believes if there’s a big increase to expect one in January. If there is a small increase, “we’re probably pretty close.”
“I think much of the increase is already built into the market,” said Suderman. “I think today’s elections could have more to say about where we go from here in the days ahead than what the report does.”
Markets don’t like uncertainty, and that is what this election brings, according to Suderman.
Listen to Suderman’s advice for producers with this upcoming uncertainty on AgDay above.