On Tuesday morning the United States Department of Agriculture (USDA) released its World Agricultural Supply and Demand Estimates (WASDE) report. The report gave a boost to corn, but not so much to soybeans.
Brian Grossman is a Market Strategist with Zaner Ag Hedge. He says you could see the corn markets change as soon as the report hit at 11 a.m. Jumping from down six cents to up ten and a half cents in a very short time. Grossman says this is due to some number cutting by the USDA.
On the other hand, soybeans didn’t get any kind of a boost. Their estimate numbers were not changed. Also, USDA decreased soybean demand estimates. This puts additional pressure on soy.
Grossman says this has been a weather market. Grossman expects to see updates every month as the effects of weather on the 2019 crops become more apparent. He says USDA is at least acknowledging the fact weather has done some damage.
Grossman says producers should be looking for corn demand to be very “elastic”.
Brian Grossman is a Market Strategist for Zaner Ag Hedge. He can be reached by calling (312)-277-0119.