U.S. Department of Agriculture officials plan to release the August World Agricultural Supply & Demand report at 11 a.m. CT on Wednesday. Greg McBride, of Allendale, Inc, says pre-report estimates suggest higher yields. Analysts will monitor how those projections will impact other areas of the report.
?We (will) probably see an increase in carryout. With the higher yields, you?re going to see an increase in production. The key comes with: What do they do with exports? We?ve seen good exports of corn and beans, but is that going to be enough to change their idea of where the goal should be for new crop exports? If not, then maybe we do see that increase in ending stocks because there?s no change to the exports and we?ve seen an increase in those production levels,” McBride says.
Some analyst’s predict record-breaking corn yields. McBride does not expect an accurate assessment of this year’s crop until next month’s report.
?I know the western portion (of Iowa) is dry, but there?s stuff out there that looks good. It looks good across Illinois,” McBride says. “Now if there?s a problem in your number one or number two state, where corn and soybeans are grown, that?s going to bring everyone else down, but it may not necessarily be on this report.”
McBride advises producers to consider short-term, downside protection ahead of Wednesday?s report.
?We?re already at low levels, but it could get worse. If this crop does get that much bigger, we could see two in front of the prices for corn, or you could see us break that $8.50 level in soybeans. There?s nothing that says they necessarily have to bounce that right back,? McBride says.
