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May WASDE highlights tight soybean stocks

The executive head of Terrain says this month’s USDA supply and demand report highlights potential room for improvement for soybean prices.

John Newton says projected new crop soybean ending stocks of 295 million bushels make for a tight supply.

“That’s a pretty low level of ending stocks and should we have any type of weather event this growing season, that starts to get pretty tight pretty fast.”  He says, “Especially if we see the administration resolve trade tensions with China.”

He tells Brownfield corn stocks are in an opposite situation. 

“USDA came in at 1.8 billion bushels, but that’s on the back of record demand for that new crop corn.”  He says, “So, I think while it’s below pre-report expectations on the stock side, it’s a lofty demand number that’s doing that. And I think that provides a little bit of headwind in the corn market.”

Newton says farmers need to know their breakeven prices and take advantage of opportunities to market new crop grain when they arise.

AUDIO: John Newton – Terrain