Market anticipates a bullish WASDE Tuesday

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Market anticipates a bullish WASDE Tuesday

The director of producer brokerage for CHS Hedging anticipates a bullish USDA supply and demand report Tuesday.

Kent Beadle tells Brownfield a combination of strong Chinese demand, South American production concerns, and a potentially smaller domestic crop should draw the U.S. carryout down to around 200 million bushels.

“And honestly, if you start to get underneath 200 million, relative to the size of the demand base, you’re talking about a stocks-to-use ratio that we haven’t had for a very long time.”

He says that would support $11 soybean futures, and potentially $12 to $15 soybeans.

“And that’s going to be primarily determined by the size of the South American crop, and then of course the growing season that we have in front of us next year.”

Beadle says the prospect of a lot less soil moisture at the start of the 2021 growing season lends itself to weather premium for corn and soybeans.

The next USDA supply and demand estimates will be released at 11 Central on Tuesday.

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