Analyst says soybeans, not corn, driving grain complex higher
Many might assume corn is driving the entire grain complex higher after USDA slashed 2020 acreage by five million acres. But at least one analyst says soybeans are in the driver’s seat.
Naomi Blohm with Total Farm Marketing says reducing corn acres from 97 million to 92 million is a very big deal. But so is the fact that USDA did not increase soybean acreage as much as the trade was anticipating.
“Along with prospects for improved domestic demand, and our crush number is strong. (so) Soybeans I think, are actually the fundamental leader.”
And she tells Brownfield weather will start to matter more to the soybean market than corn later this summer.
“Because they would be the ones that could see a bigger price move higher if the weather gets really really hot in August. That’s the critical month for soybeans.”
Blohm says the November contract is having a hard time moving above nine dollars. But if it breaks through, she argues soybean futures could quickly jump to $9.25 and possibly $9.50 IF China keeps buying from the U.S.