The Buzz: USDA Should Tighten Soybean Stocks
Government expected to slash Sept. 1 forecasted stocks.
Bryce Knorr
Published: Jun 3, 2009
Tight old crop soybean stocks could be the focus on next week's USDA report, as supplies continue to dwindle. The Farm Futures marketing team expects the government to slash it forecast of Sept. 1 stocks by 25 million bushels, to just 105 million, when supply and demand estimates are updated on Wedneday.
Senior Editor Bryce Knorr and Market Analyst Arlan Suderman discussed the upcoming report, and the prospects for a correction in prices, in this week's edition of The Buzz.
Knorr said his forecasting model shows soybean stocks could be even tighter -- to tight for USDA to acknowledge. Indeed, while the market is overdue for a correction, Suderman noted that prices can't fall too much or they'd stimulate end user buying that could exacerbate the situation.
The other closely watched number next week could be wheat, with USDA updating its winter wheat production estimate. Farm Futures expects the production estimate to fall a little, enough to take new crop stocks for wheat down to 615 million bushels.
Corn, meanwhile, could see a mixed showing from USDA, with old crop stocks dropping 25 million bushels due to better exports, but new crop supplies increases a little.
To watch the entire program, click HERE.
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Tagged: usda, wheat, farm, farm futures, soybean
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