The Buzz: Trade Gears Up For May Crop Report
Bryce and Arlan discuss their estimates.
Compiled by staff
Published: May 6, 2009
USDA's May supply and demand report is usually one of the more interesting releases by the government. Not only does USDA update its old crop estimates, but the agency also publishes its first official forecasts for new crop.
This year there are plenty of numbers to watch, according to the Farm Futures marketing team of Bryce Knorr and Arlan Suderman, who discuss their estimates in this week's edition of The Buzz.
Farm Futures sees old crop corn stocks rising a little, but new crop should tighten considerably. USDA likely will lower its estimate of trend yields due to late corn planting, which remains a problem in many areas.
Very tight old crop supplies continue to drive the soybean market, thanks to strong exports and improving crush margins. While new crop acreage could ultimately increase, 2009 for now remain fairly tight.
Wheat could be the big story Tuesday, when USDA releases its first survey of winter wheat production. While crop ratings suggest a normal crop, Suderman believes heat, drought, freeze and floods could eventually tighten supplies.
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Tagged: usda, farm, wheat, farm futures, soybean
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