Corn, wheat, soybeans facing near-term volatility

Soybeans will see more acreage

Wheat, grain Wheat, grain

Corn: Monday's forecast looked slightly improved in the medium- and long-term outlooks adding small amounts of rain and reducing heat slightly. Just as with the rains seen overnight, this forecast is not problem solving, but any improvement is welcome…Ryan Ettner
     
Soybeans: We are expecting an addition 2 million acres be planted to soybeans. After we see additional acres added to the beans, the new crop ending stocks should fall around 170 to 180 million bushels. Looking at the 112 carryout, we would expect to see a fair value for beans at 1340. After the acre adjustment, we will see fair value for new crop beans at 1280. GTE ratings were dropped this week from 65% to 60% with the average trade guess closer to 62%. Expect a lot of volatility after the report, but expect this to be the norm until the USDA changes the report times…Cordon Sroka

Wheat: We are looking for ending stocks to increase to 772 million bushels up from last month’s 735 million estimate. To add to the excitement, Tuesday's report will be the first big report that the market will be trading. When the report is released, Allendale will look for the wheat market to struggle to rally in the near term as the wheat harvest is moving into full swing and corn is now trading less that wheat on the board. We would recommend that rallies should be sold…Jim McCormick

About the Author

Ryan Ettner is a registered commodities broker and grains analyst at Allendale, Inc. Steve Georgy is a Sr. Broker/Manager at Allendale, Inc. Jim McCormick is Senior Broker/Manager at Allendale, Inc. Allendale is registered with the CFTC and NFA and is a member of the NIBA. www.allendale-inc.com

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