Just a week ago, USDA issued an explosive Prospective Plantings report. Coming off such a large report, USDA’s April WASDE report typically doesn’t spark a wild reaction. However, one analyst thinks 2021 could be different.
“Generally it’s not a market mover, it kind of is what it is,” says Chip Nellinger, Blue Reef Agri-Marketing. “Typically, we kind of know the story on old crop by this point in time generally, but this is certainly not a normal year.”
Nellinger says the things to watch in USDA’s April report include ending stocks.
“This April report has the makings of the potential to be a big market mover,” adds Nellinger. “Particularly from the ending stocks standpoint, the market really is going to watch closely what the USDA does with demand in the case of corn and soybeans. There’s a lot of evidence there that they need to raise both corn and bean demand, from not only export standpoint, the maybe the crush on beans. You could also probably not argue they’ll need to adjust ethanol demand.”
