News

September WASDE frequently accompanied by market moves

An agricultural economist with Advance Trading says the USDA’s September supply and demand report is typically volatile for commodity markets.

Brian Basting tells Brownfield, “Over the last 10 years or so, not every year, but frequently, we’ve seen as much as 10 to 15 cent move in the corn market, both to the upside and to the downside.”  He says, “In beans we’ve seen as much as the 15 to 20 cent move both to the upside and to the downside.”

He says continued global unrest, uncertainty about the size of the U.S. crop, and other factors are already proving a volatile mix for commodity prices.

“We’ve got a record long position now established by the managed money.”  He says, “The Commodity Futures Trading Commission tracks this. They have established their largest long position in the market ever recorded. It has provided a good rally.”

Basting says average trade estimates expect the national corn yield to be reduced from the August estimate to 178.1 bushels per acre, while soybean yield estimates are expected to only decline slightly.

“So that makes it doubly important, I would suggest, that producers have a marketing position in place prior to the release of the report on Friday,” he says.

The USDA’s September supply and demand report is out Friday at Noon Eastern/11AM Central.

AUDIO: Brian Basting – Advance Trading