USDA Reports
Growers can finally combine supplemental coverage with farm programs without losing protection that fits their operation. Meanwhile, federal officials are developing trade incentives for four countries that could expand demand for American cotton.
John Heinberg of Total Farm Marketing, says, the selling was tied to inflation concerns with the CPI coming in hot at 3.7%.
While EPA’s SRE reallocation proposal was good news for the biofuels and agricultural industries the market seemed disappointed and faded into the close according to Jim McCormick with AgMarket.
Darren Frye with Water Street Solutions says part of bounce in corn was technical buying off support, plus the market was also trying to determine if USDA’s yield forecast is correct.
Brad Kooima of Kooima Kooima Varilek says last week’s technical breakout in cattle was a surprise to him due to the current fundamentals.
Corn futures fell about 5% as USDA raised the national yield. Former USDA chief economist Seth Meyer says the data raises fair questions, but he doesn’t think sampling alone explains the jump.
Jerry Gulke, president of The Gulke Group, says it doesn’t matter whether farmers believe the USDA report or not because it’s what the market is trading.
Brian Grete with Commstock Investments says a corn yield decrease was built in ahead of the report with average trade guesses .7 bu. lower than September. This is the largest October yield increase back to 2004.