Next WASDE could lead to price “tug-o-war”
A market analyst anticipates some two-sided trade once Tuesday’s USDA supply and demand report comes out.
Naomi Blohm with Total Farm Marketing says the first estimates of the 2020 crop will be unveiled, as will likely revisions to the 2019 crop.
“We may see harvested acres come down, we could see yield come down a little bit as well. So we’re going to see if there are any changes to old crop, and then we’ll see how that’s reflected on new crop price potential. So there is a lot of information coming out Tuesday.”
Blohm expects old crop figures to be friendly, but she tells Brownfield the forecast for new crop will probably be bearish.
“And seasonally, this is actually the week coming up here where prices have a bigger tendency to find their price low. So there’s a lot of tug-o-war going on between fundamentals, between technicals, and really understanding what the USDA is going to bring to us.”
She says there’s potential for volatility, so producers need to have their marketing plans ready to go.
The report is out at 11 Central Tuesday morning.