Grain markets hope to tread water rest of March
The lead analyst for DTN says he hopes the grain markets can tread water until two big reports come out the end of this month.
Todd Hultman tells Brownfield flat trade would be a victory given the negative influence of the coronavirus outbreak.
“It’s been a real tough battle for our corn and soybeans especially, just to try to even hold sideways. So if we can continue to do that for the rest of the month, that might actually be good news for our grain markets right now given the situation.”
USDA will release its quarterly stocks figures and prospective planting forecast March 31st.
Hultman says the stocks report could show better corn demand than most are expecting.
“Given our tighter supplies and low-quality corn across the country.”
His feelings on the prospective planting report are mixed.
“I think there will be very aggressive intentions to plant more corn this year. But the real question is are we going to be able to plant much more corn?”
Hultman is concerned another wet spring will limit corn acres in 2020.
For soybeans he says both reports should be bullish, especially if China picks up its purchases.