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Analyst on Friday’s “disappointing” USDA report

A market analyst is calling Friday’s USDA crop report disappointing.

Jamey Kohake with Paragon Investments says he expected friendlier numbers.

“The corn yields were a bushel higher than where we were in December. They did lower harvested acres (for) a crop size of 13.6 billion, just a little bit lower from where we were last month.”

He tells Brownfield the biggest negative for corn was a larger than anticipated global production figure.

Kohake sums up the report as a mixed bag overall.

“And I look for the market, especially in corn, to remain range-bound and still supportive on the breaks. Beans (too) assuming we pick up some big-time demand with the phase one agreement (with China).”

Corn and soybean futures closed around two cents higher Friday.

He suggests long-term rallies will be difficult to sustain with a huge South American crop coming online.