As the week begins, Brian Splitt, a broker with Allendale Inc., and Tommy Grisafi, branch broker of Advance Trading, are talking to AgDay host Clinton Griffiths to discuss what they’re watching in commodity markets.
Splitt says he'll be watching USDA's grain stocks number as the new marketing year begins.
"That is your carry-in number and we're going to see what kind of job USDA has done managing this number throughout the course of the year," says Splitt.
Grisafi says he'll be watching the spring wheat side of that ledger.
"A lot of [Advance Trading Inc.] growers up in the Dakotas are wondering where all the abandoned acres are and I'm interested in how that is going to play out," says Grisafi.
Recent strength in the crude oil market and trades above $50 per barrel.
"If $50 is the new floor instead of the ceiling maybe the structure is changing in the commodity markets as a whole for energy prices," says Grisafi. "Isn't corn energy at some point?"
Splitt says as the week wears on he'll keep watching the spread between front month and back month futures contracts along with basis levels.
"The spreads and the basis have told us there's plenty of crop," says Splitt.