Corn and soybean prices could be impacted by the USDA’s next World Ag Supply and Demand Estimates (WASDE) Report.
“I have a feeling we could be getting set up for a bullish surprise,” says Karl Setzer, Commodity Risk Analyst with AgriVisor. He says this month’s report from USDA will include some new information about this year’s corn and soybean crops heading into harvest.
“There’s something I’m really watching close. This is going to be the first report that will include field-collected data,” according to Setzer. “It will also include any potential changes to harvested acres. USDA was going to reevaluate those. Don’t be too surprised if we don’t see the addition of both harvested acres on corn and soybeans.”
Setzer says that data could have a bullish impact on the grain markets.
“We could actually see our production on corn yield per acre—and soybeans as well—both decline a little bit from what we had in August. But, if we have higher acreage, we could still see a higher production number. If we see bigger acres and we come in and drop this market, I think the knee-jerk reaction would be bearish and we would see futures drop, but buyers who have been hesitant and are wanting to see what the U.S. does with that data before jumping on, could end up being positive long-term,” says Setzer.
The USDA’s next WASDE report is due out at 12 p.m. Eastern on Tuesday, Sept. 12th.