Despite a soybean carryover number lower than market expectations in today’s World Agricultural Supply and Demand Estimate (WASDE) from USDA, market reaction was muted with beans only up a quarter cent on the day.
USDA lowered ending stocks estimates by 25 million bushels from the previous month for the 2017-18 growing season. But the market refused to rally on the news over global trade concerns according to Ted Seifried of Zaner Ag Hedge.
“We're still concerned about what might happen for exports for next year with trade relations being the way they are,” Seifried says. “So keep an eye on soybeans, the number is bullish, but the trade’s a little bit reluctant to embrace that.”
On the corn side of the ledger, Seifried says with USDA raising export and ethanol numbers, there’s room for a larger corn crop this year.
“That’s adding some relief to the corn market,” Seifried explains. “And I do think that the low might be in at this point, although we will be in a weather market going forward. “
Click the player above to watch Ted Seifried’s complete analysis of Tuesday’s post-WASDE report market action.