As I mentioned two weeks ago, 2010 is the year of indecision and that continues. On Wednesday the USDA released its 2010 acreage forecast and ending stock report. It is hard to not hear the reports and think that there is a bit of a bearish tone to the all the commodities involved. For example wheat acres in the US are down 9% but the ending stocks are up 30% and corn planting is expected to be up 3% and ending stocks are also up 11% compared to a year ago. The general feeling has been that this report has a bearish tone to the large and smaller crops.
Some of the major issues continue to be how much crop should farmers be forward contracting in 2010 and what can a person plant this year to make money besides some of the obvious choices.
I asked Jonathan Driedger of FarmLink Marketing Solutions about what he thought about the report and what farmers can take from it to make some decisions on their farm.
Jonathan Driedger – FarmLink Marketing Solutions – USDA Report, Bullish or Bearish – April 1, 2010
I also found the following analysis of the report courtesy of AgWeb.com. What I find interesting is that Dan Basse’s (below) analysis is very similar to Jonathan’s (above). I have seen some people reporting that there is a bullish angle to the USDA report but I don’t see it myself.
Dan Bassse, AgResourse President talks about the report and what this may mean for the soybean, corn and wheat market.