News

Analyst suggests bearish sentiment ahead of USDA report could set stage for a bump

A market analyst suggests recent pressure on corn and soybean futures could bode well ahead of tomorrow’s USDA supply and demand estimates.

Karl Setzer with AgriVisor says historically trading down into a report results in a steady or better response.

“Looking at all the negative data that’s been thrown at this market (and) how much pressure we’ve put on futures, I would not be too surprised to see a little bit of a bump in the market.”

But he tells Brownfield that bump might not occur immediately.

“We’ve developed a pattern of the following trading session being when trade really pays attention to the data that comes out. So to see trade digest the numbers tomorrow, look at them, and then make their big decisions come Sunday night (or) Monday, that wouldn’t be too surprising.”

Setzer says the most important numbers in Friday’s report will be ending stocks for corn and soybeans.  If the carryout increases, he points to $5.00 for corn and $12.60 for soybeans as support.

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Your email address will not be published.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!