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No major surprises in USDA’s WASDE report

There were no major surprises in Thursday’s supply and demand report from USDA.

“The bottom line is USDA has once again reassured the markets that we are amply supplied,” says INTL FCStone analyst Arlan Suderman.

He says it’s going to take a sharp increase in Chinese buying or a significant weather event to get the markets moving.

“We’ve got to have either something to really threaten the demand side with stronger demand—China buying—or we’ve got to have that weather event threatening the supply side. It’s going to have to be significant, especially for corn, with USDA forecasting a 3.3 billion bushel carryout.”

Suderman says he does expect Chinese buying to pick up in the second half of the year, but adds there’s a long way to go to meet earlier projections on Chinese purchases.

Suderman made those comments during a webinar on Thursday afternoon.

AUDIO: Excerpt from Suderman’s webinar–Take Home Points

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