Prices slide on prospects of U.S. bumper crop
Corn and soybean futures are spiraling lower as prospects for a bumper U.S. crop improve.
Iowa State University Extension economist Chad Hart says USDA’s supply and demand report Tuesday was negative across the board.
“Signs of demand weakness, while at the same time not seeing a crop shrink a bit on the supply side. The weather issues that we know we have out there and that are lurking are not showing up in these official numbers from USDA yet.”
He tells Brownfield USDA made up for the June 30th reduction in soybean acreage by cutting export demand 65 million bushels.
“I’ll put it this way, I expected it given what we saw with the acreage number a couple weeks ago. So I knew something had to give in the balance sheet, and it was exports that was the target.”
Hart says the question now is will the price slide spark a rebound in export demand as the market searches for a bottom.