The markets have their focus squarely on Thursday?s release of the World Agricultural Supply and Demand Estimates (WASDE) report from the USDA. The August report carries a lot of weight because we are going to see how the corn crops are actually beginning to look for this growing season. The numbers also come from boots on the ground estimates, as well as farmer surveys.
The USDA has left us scratching our heads a few times in the past few months. So, what are some of the thoughts ahead of the report?
Greg McBride is a Commodities Broker with Allendale, Inc. He says that he is expecting to see some lowering of estimates for corn, soybeans, and wheat.
McBride also says that we need to pay close attention to what the USDA has for estimates on the Brazilian crops as well. Traders are estimating steady to lower numbers there as well. We could see a drop of three and a half to four and a half million tonnes.
McBride talks about how the markets could react if the USDA follows these estimations on Thursday.
The biggest wildcard through all these estimates is ultimately the USDA. What will they do? McBride has some comments on some of those numbers that left us confused, earlier in the year.
For more information on services from Allendale, Inc., visit their website. You can also catch Greg McBride, every Monday, on our Opening Market Podcast.
