Analyst anticipates a bearish USDA supply and demand report Wednesday
The director of producer brokerage for CHS Hedging suggests this week’s volatility in the futures market could be a precursor to a bearish USDA supply and demand report tomorrow.
Speaking to Brownfield around midday Tuesday, Kent Beadle said he expects some sort of correction because of high prices.
“Certainly it felt that way yesterday when we were in the midst of the corrective activity that we had. Given the strength that we’re having again today, it probably raises the possibility to having a bearish reaction tomorrow.”
But he says the market remains well-supported.
“Lower prices at this moment in time are not what the market needs. We have a demand rationing job that we need to do, especially on the front end of this market.”
And Beadle says that rationing does not seem to be occurring based on most margin calculations.
The USDA Supply and Demand Report will be released at 11AM Central tomorrow.