Report could be price-friendly
SPRINGFIELD – Friday’s USDA report could be somewhat friendly for corn and soybean prices if a recent survey is any indication.
Market analyst Bryce Knorr says a Farm Futures survey found lower production of both crops.
“Due to weaker demand, I don’t think all of that will come off the bottom line in terms of ending stocks,” Knorr told The Central Illinois Farm Network during this week’s Soybean Summit in Springfield.
According to Knorr, it may be enough for the funds to come in from the sidelines to buy more corn and start buying soybeans.
USDA releases the reports this Friday (Feb. 8) which were supposed to be released in January but weren’t due to the government shutdown. This includes final 2018 corn and soybean production.
“The market has been waiting for that data for a month and when you look at the charts, we’ve been trading in tighter and tighter ranges.”
A move higher could signal a rising trend into March and April giving producers more sales opportunities. The fundamentals are still looking fairly bearish for soybeans and Knorr doesn’t think that will change in 2019 unless farmers cut acres even more than anticipated. Due to a wet fall and slow fertilizer application season, more growers may be forced to plant more beans.
“Soybeans also have less potential for losing money,” Knorr explained. “That may be a consideration for some growers in a year of tight cash flow when bankers don’t want to be advancing them all the money they need to plant corn.”