The latest WASDE report was released last week to muted responses. The markets are more interested in the USDA Acreage Report coming on June 30th. This will set the stage for how the summer months could go in Chicago. Some call it the biggest report of the entire year.
Joe Vaclavik is the Founder and President of Standard Grain. He talks about the volatility that this report often brings. However, this year has been volatile enough already.
The biggest question is in the actual number of acres of both corn and soybeans that were planted this year. There were rumors of increased soybean acres before the end of last year. There have also been counter claims that this number won’t be as large as expected because many inputs of fertilizer for corn were already purchased before the prices increased. Now, weather is a factor in the Northern Corn Belt where rains are forcing some producers to make tough decisions on what they will plant.
Vaclavik says that it isn’t too surprising that corn is outperforming soybeans, even with higher input costs.
Vaclavik says he doesn’t have any definite predictions for how this report will go. He says to have your marketing plans ready for anything.
Even though this report isn’t due out for two more weeks, it is already generating a lot of actions in the trade.