After experiencing a very surprising January WASDE report, this month’s report was as quiet as expected. Overall, there really wasn’t much for the markets to react to. Allendale commodity broker Greg McBride gave an analysis of this month’s report.
The report was so uneventful that the markets have already moved on from it. This makes sense, as McBride said there shouldn’t be any changes between now and the Prospective Plantings report at the end of March.
With President Trump also recently announcing that China is considering buying an additional 8 million metric tons of soybeans, the future for the soybean market could be very bright. However, McBride said there’s no guarantee yet that this purchase will actually happen.
The USDA also increased its projections for the crops in South America, which brings its projections in line with other estimates. McBride said this is unusual because the USDA tends to be much more conservative in its South American crop projections.
The team at Allendale can be reached by calling 800-262-7538, or you can visit allendale-inc.com.
