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USDA’s November report brings optimism for corn and soybean markets, AgMarket.net says

The co-founder of AgMarket.net says the USDA’s November supply and demand report brings optimism for the corn and soybean markets.

Matt Bennett says record corn demand and lofty yield projections could set the stage for positive movement after the first of the year.

“Last year, they came down 4 bushels in January, so it’s not out of the question to think that they couldn’t come down a fair amount.”  He says, “So, if you would take this big demand and then all of a sudden you dropped the yield that could give the corn market a bit of a story.”

He tells Brownfield that global carryout on soybeans remains tight, and recent trade announcements have helped demand expectations.

“A 290 carry out on beans is very snug.”  He says, “We’re not building world stocks, which is impressive considering Brazil just harvested a massive crop this last year. So, we’re going to have to have good acreage numbers, and we’re also going to have to have good production moving forward because demand is just really boosted up.”

Bennett says many producers have capitalized on the gains in the soybean market while also utilizing limited risk positions to take advantage of possible further price improvements.

Brownfield spoke with Bennett during NAFB’s annual Trade Talk event last week in Kansas City.

AUDIO: Matt Bennett – AgMarket.net