Grain markets respond lower to USDA report
A market analyst says there were no big surprises in USDA’s report.
Don Roose with U.S. Commodities says with good weather in the forecast and a negative USDA report, corn and soybean prices are trending lower.
“I think analysts still want to look forward at the rest of the growing season with soybean acres down sharply and if we go down too much on the price, does the export pace and crush really go down?”
Roose says the USDA’s report continues to show large new crop production numbers for Argentina and Brazil, also weighing on U.S. soybean prices.
“USDA put us up almost 1.1 billion bushels for next year on the soybean crop between those two countries versus what we had this last year. That’s almost 25% of what the U.S. raises.”
He says the increased competition will be monitored closely heading into the new crop marketing year that begins in September.