CBOT weekly outlook: USDA report leaves trade unsteady

CBOT September 2019 soybeans (candlesticks) compared to September corn (line). (Barchart)

MarketsFarm — Chicago Board of Trade markets were volatile following Friday’s U.S. Department of Agriculture’s acreage report, which saw more corn acres and fewer soybeans than expected.

“We had a sharp break, but now we’re starting to recover a bit,” said Steve Georgy, president of Allendale Inc. in Illinois.

USDA’s next world agriculture supply and demand (WASDE) report will be released next Thursday (July 11). Georgy expects to see lowered yield numbers for soybeans, which will add a firmer tone to soybean prices next week.

“I wouldn’t be surprised to see the bean market strengthen as we go into that report next week,” he said.

Georgy noted “80 per cent of corn is made during July and August,” so markets will continue to watch weather forecasts closely through the summer months.

“It’s very important what the weather looks like at the end of this month,” he said.

Markets have become largely immune to the sentiment of trade talks between the U.S. and China, as negotiations have dragged throughout the better part of 2019.

“Until something actually gets done, we’ll sit here and not worry about it,” Georgy said. “It’s not really moving grain markets right now at all.”

— Marlo Glass writes for MarketsFarm, a Glacier FarmMedia division specializing in grain and commodity market analysis and reporting.

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