Important to monitor South America
Now that the December USDA report is behind us, it is important to watch crops and weather in South America.
Merrill Crowley with First Choice Commodities in Watseka reminds growers to be careful when interpreting rain percentages there. They usually get twice as much than they need for the crops.
“They can have less rain as a percentage of normal and still have a good crop,” Crowley told The Central Illinois Farm Network last week.
The dry areas down there have gotten smaller, according to Crowley and things are looking a bit drier for January.
Prices reacted lower last week after USDA did not release as bullish of numbers as some had expected.
“Now we are going to go into the usual seasonal doldrums I call them. I don’t think prices are going to do much until we maybe get closer to January.”
The January 12 USDA report includes supply along with final yields and acreage numbers. Demand numbers and quarterly stock information will also be released next month.
“Everybody may start ramping-up on buying beans once we get toward the end of this month,” Crowley said.
Crowley does not anticipate prices pulling back much as there are just too many factors out there indicating things are tight.
For more information, contact Crowley at First Choice Commodities: 815-432-2220.