IABRN — U.S. Department of Agriculture officials tomorrow will release the monthly World Agricultural Supply and Demand Estimates report. Analysts do not expect any “major changes.” They suspect other factors will serve as key influencers throughout the trading week.
Greg McBride, commodities broker with Allendale, Inc., does not expect to see “any major changes” in tomorrow’s World Agricultural Supply and Demand Estimates report.
“We’re looking for slightly higher South American production, but not enough to swing prices in any major direction. We know they have a big crop, (and) it continues to get a little bigger,” McBride said. “On the U.S. side of things, we look for a slight decrease in corn ending stocks and slight increase – one to two million bushels – for (soy)beans and wheat.”
Analysts will fix their attention on world supply and use.
“If you think about the countries that have been hit hard by this coronavirus, it makes you wonder how much is getting used or how much they are not importing at a time when they should be because they have other things they’re worried about,” McBride said.
McBride does not anticipate this report to have a “major impact” on grain markets. He expects greater price movement from the Prospective Plantings and Quarterly Grain Stocks reports, to be released later this month. Until then, COVID-19 remains of concern, as well as a crude oil price war.
“Over the weekend, OPEC had a meeting and decided (against) production cuts because they couldn’t get Russia to agree to cuts. Saudi Arabia then decided to lower the cost of oil they ship to the EU, Asia and U.S. by six- to eight-dollars a barrel and increase production. They’re basically creating this fear and panic of selling the crude oil market. You have a situation now where you’re tripping circuit breakers, not price limits, in the Dow, crude oil and other markets to stop trading at certain times, for a certain amount of time,” McBride said.
This article originally appeared on the Iowa Agribusiness Radio Network
