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USDA Ag Outlook Forum could spark volatility next month
A market analyst points to USDA’s Ag Outlook Forum next month when asked about possible sources of volatility on the horizon.
Naomi Blohm with Total Farm Marketing tells Brownfield 2021 acreage projections will be released as part of the virtual forum February 18th and 19th.
“That’s also when some of that South American crop is harvested. And seasonally, mid-February to early March is the time of year when we have our winter rallies come to a halt and prices have a correction lower.”
While some correction has already taken place, she says plenty of bullish fundamentals remain.
“We have smaller supplies, and the demand for it is strong. So prices should be supported until we get the crop in the ground and we know what’s growing this summer. Trade is already talking even more loudly about the drought in the United States.”
Blohm says global demand and production will stay at the forefront into the summer as well.
