The May WASDE report is among the most highly anticipated reports of the year. That’s because this is the first WASDE report to include information about the current year’s crop. It was even more anticipated this year due to the current global and macroeconomic conditions. There’s a lot of potential in the grain markets this year, so farmers and analysts alike wanted to know if this year’s crop will live up to it.
Today’s report fell mostly within expectations. However, there were a few surprises, particularly when it comes to projected yields. Allendale commodity broker Greg McBride said the USDA made a major decrease to yield projections, but he feels like it’s a little early.
Another surprise was the massive surge in wheat prices. McBride said that was due to a drop in the old crop wheat ending stocks.
Over the past few days, the markets were primarily focused on the WASDE report, so they were a bit reserved. However, now that the report is out, the focus will be on planting progress and whether or not we can get the crop in the ground before we start to lose out on some yields. McBride said the weather could interfere with planting progress this weekend, and it’ll be particularly bad for farmers who haven’t been able to get in the field yet.
With these current concerns, a lot of farmers have their fingers hovering over that panic button. However, it’s important to stay moderate in those concerns and keep a level head. McBride said it’s a good idea for farmers with grain left in the bin to take advantage of the great prices we’re seeing right now.
The team at Allendale can be reached by calling 800-262-7538, or you can visit allendale-inc.com.