Today’s USDA Report came out about as expected and except for a small stumble in the corn market, bullish attitudes remain. Market news started early this morning with financial reports showing inflation numbers higher than expected. The stock market responded with a sell off from recent record highs. It remains to be seen if Wall Street believes the Fed can control inflation with low interest rates as Congress continues to pump more money into the economy.
The 20/21 balance sheet remains tight with low ending stocks. The market continuing to move to ration remaining supplies of soybeans and corn. This was our first look at 2021/22 Supply/Demand numbers as USDA uses March acreage numbers and trend line yields to begin looking at demand and ending stocks for the upcoming marketing year. As you complete your marketing decisions for the 2020 crop and move on to marketing you 2021 and even 2022 crops, here are some points to consider.
The market will be in rationing mode through this next crop year unless we see better than average crops in the U. S. or South America. There is little room for weather problems this summer. The corn crop currently growing in Brazil is suffering from a lack of moisture and continues to deteriorate. Take advantage of these bullish markets to get all your past production sold. Start pricing a portion of future crops if you have not already done so. Use cash sales or marketing programs available from River Country Coop or our marketing partner, Stone X.
We may very well see higher planted acreage totals in the June 30th acreage report. The extent to which that occurs will affect supply/demand tables at that time. Inflation is rising which typically supports commodity markets. To what extent we do not know. We are in new territory in this post pandemic economic recovery. Increased futures position limits, increased trading limits and the flow of money between markets will influence markets moves both up and down this growing season.
I am always available at Miesville to discuss your marketing plans.
David Belongia, Feed and Grain Manager