U.S. Department of Agriculture (USDA) officials tomorrow will publish their monthly World Agricultural Supply and Demand Estimates (WASDE) report. Traders anticipate “friendly” alterations, but nothing uncommon.
Allendale, Incorporated, a full-service, futures trading brokerage and research company, estimates 2019/2020 corn ending stocks at 1.864 billion bushels, soybean ending stocks at .443 billion bushels and wheat ending stocks at 1.864 billion bushels.
Greg McBride, commodities broker with Allendale, Inc., views expectations as “friendly,” not bullish. McBride says, “We can never get too bullish on a USDA report.”
“The expectation looks nice, as far as decreases in ending stocks for U.S. corn, beans and wheat. It probably won’t be as big of a drop as some would like to see. The USDA has announced they are only going to make changes on what is publicly known. It’s not going to be a huge change for the overall demand,” McBride said.
Many hope to see changes to export demand, as the result of a Phase One trade deal with China. However, chances of such are slim. Matt Bennett, founding partner of Ag Market, fears grains markets continue to grapple with business promised by China.
“People were hopeful that this February crop report was going to be a little more lively than it is due to that. The unfortunate reality is there are more question marks than anything,” Bennett said.