As we’ve been reporting on throughout the week, many estimates for the January WASDE said that it would likely be a rather uneventful report. The USDA loves to prove us wrong though, and they did that today by making cuts to both the corn and soybean numbers while leaving the South American crop unchanged. Allendale commodity broker Greg McBride said this news is very bullish for the corn markets.
With no changes to the South American crop, Brazil and Argentina are projected to have massive supplies for both of their crops. McBride said it’ll be interesting to see how that continues to impact the U.S. grain prices.
Soybeans also received very bullish news, but McBride said both marketplaces are facing uncertainty with the news about the South American crop and the potential for tariffs and trade wars with the new administration.
The team at Allendale can be reached by calling 800-262-7538, or you can visit allendale-inc.com.
