With all that’s going on with China and U.S. relations, you can be forgiven for perhaps not noticing there was a USDA report on Friday, May 10.
To discuss what impact the report had, RealAg Radio host Shaun Haney is joined by Matthew Pot, of Grain Perspectives, and although the report is perhaps less of a wave-maker than a presidential tweet, the high supply, complicated demand picture of corn and soybeans definitely bears analysis.
The report pegged global corn supply as quite high and that’s likely to continue even with average crop yield trends, Pot says.
While China is a big soy/corn user, even big sales to that country won’t solve all these high-supply, bearish fundamentals. “With so many factors at play, we’re just into some tough markets,” Pot says. A lack of uncertainty of supply limits the upward potential of crop prices.
Listen below to a full analysis of the USDA report and current market conditions:
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