The election isn’t the only major event happening in the ag world this week. On Wednesday, the USDA is set to release its WASDE report. Many expect the soybean yield to increase, while it’s uncertain what corn numbers will do.
It could be expected that it would cause pressure in prices, but that doesn’t seem to be the case.
“Everything you hear is that bean yields are good,” said Steve Nicholson of RaboBank AgriFinance on U.S. Farm Report. “The market’s pretty well baked that in and is ready for that too.”
Nicholson predicts if the USDA increases yields to 54 or 55 bushels per acre, the market will “go the other way on us,” calling that much of an increase “ridiculous.”
On the other hand, FC Stone published its pre-report forecast, predicting 52.8 bushel per acre soybeans, up 0.3 from the October report.
“That is now our estimate for the final January number, 1.4 above USDA’s old number,” said Arlan Suderman of FC Stone.
Watch Suderman, Nicholson, and Alan Brugler of Brugler Marketing discuss November price pressure and how the markets could react to the election on U.S. Farm Report above.