Managing for Profit

The September harvest projections are bearish

The USDA raised its U.S. corn and soybean production projections each by 3 percent since projections just a month ago. If they hold, it would mean record crops for both this year.  Brownfield Ag News market reporter John Perkins suggested to Allendale Chief Strategist Rich Nelson that the numbers have created a bearish fundamental outlook.  Nelson agrees, and talks about the reasons for his agreement.  Corn is now seen at 14.4 billion bushels, soybeans at 3.91 billion bushels, both up 3 percent from the August guess.  In addition to the harvest projections causing market pressure, there’s also bearishness from the USDA projection that U.S. corn ending stocks will be at just over 2 billion bushels.  That’s a lot of corn, but it’s in high demand.  For managing risk, Nelson suggests storage, at least until there’s a market rally, and that won’t be a big one.

AUDIO: Rich Nelson (3 min. MP3)

Add Comment

Your email address will not be published.


 

Stay Up to Date

Subscribe for our newsletter today and receive relevant news straight to your inbox!