USDA surprised by lack of report reaction
USDA’s crop supply and demand forecasts did not seem to make much of a wave in the markets. And that surprised the agency’s chief economist Rob Johansson who says there wasn’t even reaction to the fact that USDA analysts stuck with the huge corn acreage number of 97 million. He says one would expect corn growers would have cut corn acres for soybeans..
“That just leads me to believe that the market’s already priced in a lot of debt.”
Most corn growers have crop insurance with the harvest price option..
“Even though prices may have come down since February, producers have sort of locked in that price on a pretty large percentage of their crop.”
Since mid-March, soybean and corn prices have plummeted with corn most affected by the pandemic.