It seems like we only get one or two friendly USDA reports to talk about every year, and the July WASDE report was one of them. However, it’s not as bullish as it might initially seem, so expectations for the long term need to be tempered. Allendale commodity broker Greg McBride said the corn numbers were particularly surprising.
While this report isn’t necessarily bullish in the bigger picture, McBride said the friendliness of the report kept things from getting too burdensome in the grain markets.
McBride said the market prices are at the mercy of the funds right now, and the funds are at record short levels in the corn and soybean contracts. But if they lighten up just a little bit, it might be a good time to make some sales.
McBride added that sellers should take advantage of any rallies that might happen here soon, especially when it comes to the weather.
The team at Allendale can be reached by calling 800-262-7538, or you can visit allendale-inc.com.
