The latest WASDE report that came out on Monday gave us the first boots-on-the-ground reports from USDA as they sent their scouts into the fields. However, they still lowered production estimates. Corn basically was in-line with estimates, and soybeans were cut further than anticipated. While the markets reacted accordingly, there is still concern about what our harvest will mean for supply and demand, especially if South America falters at all this year.
Jim McCormick is with Agmarket.Net. He joined us on this morning?s Opening Market Podcast. He talked about the fears of inflation and the reactions the Fed will have to this new information. That is going to influence how much we can sell globally.
Obviously, we cannot count the bushels before we get them in the bin. However, we have forecasts that are telling us what we can probably expect. Even if there is some change lower, it won?t likely be off but a large percentage, unless there is some major weather event in the next days and weeks. McCormick says the real worry comes in demand. What will happen if prices increase, and the Fed stays aggressive?
Jim uses corn as an example to show us how rationing could work.
The markets aren?t known to be very patient, and right now we have to play the waiting game.
You can hear our whole conversation on this morning?s Opening Market Podcast.
