The Buzz: USDA Reports, Planting Delays Should Support Prices
Seasonal tendency for wheat rallies likely to top out soon.
Compiled by staff
Published: May 12, 2009
Between Monday's crop progress update and Tuesday morning's monthly reports, USDA provided plenty of fodder for bulls to chew on, according to this week's edition of The Buzz.
With corn planting off to a very slow start, Market Analyst Arlan Suderman said the market will be very sensitive to any additional threats to production, thanks to very tight world corn supplies. Senior Editor Bryce Knorr noted that both old and new crop corn have gaps just above Monday's close that futures will challenge early on.
The outlook for soybeans is also friendly. While much of the attention of traders has been focused on very tight old crop supplies, Suderman noted that USDA is counting on a huge South American crop next year -- something that may be difficult to achieve with political chaos in Argentina and the weak U.S. dollar causing a financial squeeze in Brazil.
Knorr noted a seasonal tendency for wheat rallies in Chicago and Kansas City to top out soon, making it more difficult for prices to break through chart resistance, despite improving long-term fundamentals.
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Tagged: usda, wheat, soybeans, farmfutures, farmfutures.com
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