The marketplace is ramping up speculation about U.S. corn and soybean acres ahead of USDA’s Planting Intentions report due out on March 31. Increasingly, it seems traders think there will be plenty of both crops planted this year, says Jerry Gulke, president of the Gulke Group in Chicago.
“Markets reacted to more and more discussions about maybe there will be sufficient acres planted of both [corn and soybeans] as a survey of almost 30 traders came out the average guess is 90.9 [million acres of corn] and 88.3 [million acres of soybeans],” says Gulke in an interview with “Weekend Market Report” host Pam Fretwell in an episode airing Saturday, March 25, 2017. “Given a good yield this year, [that] would be sufficient production for both crops.”
Meanwhile, live cattle and feeder cattle this week continued their rally that started last October. This week, news of tainted meat came out of Brazil, which should result in beef demand switching to the U.S., “seemingly at reasonable prices as well and then leading to even better profits for the cattle feeder,” Gulke says.
Look for more acreage details a bonus report with Gulke and Fretwell airing Tuesday, March 28 on AgWeb.com.