Economist expects continued grain market volatility
An ag economist says the USDA’s recent supply and demand estimates are a positive for corn producers as the ending stocks estimate for old crop corn tightened.
Ben Brown with the University of Missouri’s Food and Agricultural Policy Research Institute tells Brownfield the corn market will likely continue to be volatile.
“When I say volatile, I’m talking up 20 – 25 cents a day, down 20 the next day and then back up 10, right,” he said. “So, we’re going to see these swings in the corn market until we get a better picture weather and what the summer growing season is going to look like.”
Brown said while nearby soybean contracts took a hit Thursday following the report, new crop soybean contracts were up.
“That just signals that the trade was caught off guard by the reduction in soybean crush numbers,” he said. “Plus, if you look at old crop soybean carryout, it came slightly above where the trade was expecting for the day.”
He said global soybean ending stocks came in higher than what traders expected but the new crop soybean ending stocks picture remains tight. Brown said soybean acres will likely have to increase in USDA’s June acreage report to continue to support the market.