WATSEKA – Everyone is on pins and needles waiting for Friday’s USDA report to be released as this one tends to set market direction for the next few months.
Merrill Crowley with Midwest Market Solutions in Watseka wants to be cautiously bullish heading into the report since USDA has been known to spoil some moods lately.
“It’s a little concerning when everybody is bullish but we have sold off because of the situation in Iran,” Crowley told The Central Illinois Farm Network. “It looks like everybody is pretty content to stay short going into the report.”
With the selloff, Crowley feels a bullish report should be bought. Even with everything that hit the market last year, they were still saying up until the November report that we are only 200 million behind last year’s production – something Crowley finds hard to believe. Historically, this report is roughly 40-400 million bushels short on the demand side.
Crowley agrees exports are lagging but a deal with China should change the situation.