USDA’s January supply and demand report could be explosive
Some analysts are predicting an explosive USDA supply and demand report January 12th.
Jamey Kohake with Paragon Investments says while bullish sentiment is being priced in.
“I think it’s going to be a really volatile report. I think you’re going to see everybody kind of juiced up on the long side, the funds are pretty much already there, long corn (and) long beans. If we don’t get it to be bullish enough, or even neutral, you could see a major, major round of profit taking.”
The January report includes final production estimates for 2020.
Global Commodity Analytics president Mike Zuzolo tells Brownfield he sees a correlation between $13 soybeans and ending stocks around 175 million bushels.
“Does that go down another 10 or 15 million bushels? Maybe. But does that really jolt the market to allow it to go even higher as we see the exports start to show some rationing of demand.”
Zuzolo says he’s more interested in the price dynamics that emerge after end users get a look at USDA’s numbers as opposed to the estimates themselves.
Jamey Kohake interview:
Mike Zuzolo interview: