AUDIO: Brian Grossman, Zaner Ag Hedge
The USDA World Agriculture Supply and Demand along with the annual crop production report usually sparks volatility in the grain markets. A Market strategist gives his take.
Brian Grossman is a market strategist with Zaner Ag Hedge in Chicago. He says Friday’s report had a few surprises.
“Specifically, on the corn number, the USDA raised the corn yield up to a record 176.6 above last year’s record. Unfortunately, that was kind of a surprise. Against most expectations, they did not lower the corn export figure so that kept ending stocks on the U.S. side at a 2.477 billion-bushel carryout,” Grossman says.
Soybeans got a bullish report.
“The average trade was looking for the yield to come down a bit. That leaves U.S. ending stocks a bit higher at 470 million due to some reductions in demand,” Grossman says.
Grossman says continue to see the grain markets react to the report this week.