MarketsFarm — Soybean and corn prices on the Chicago Board of Trade have backed off of highs hit earlier in the week.
That’s due mainly to harvest activity putting pressure on prices, according to Steve Georgy, president of Allendale Inc. at McHenry, Illinois. Corn crops across the U.S. are currently only 11 per cent harvested, due mostly to late-developing crops.
However, harvest is well underway, ahead of forecasts of frost in some areas of the Corn Belt within the next few weeks.
“Farmers are taking note of that,” Georgy said. “They’ll be making cash sales if they need to make them before December.”
The U.S. Department of Agriculture (USDA) will release its world agriculture supply and demand estimates (WASDE) on Oct. 10. But Georgy said the impact of that report will likely be overshadowed by impending trade talks between the U.S. and China.
“China is expected to buy between one and 1.5 million tonnes of beans before they come to the table for negotiations next week,” he said. “That will have more of an effect on the bean products than anything else.”
As significant geopolitical strife wreaks havoc on stock indexes, investors seeking reprieve from a tumultuous financial sector may turn their attention to a steadier commodities market.
“Are we going to see money come out of stocks and into something relatively cheap?” Georgy said. “That money has to go somewhere, and it may go into grains.”
— Marlo Glass reports for MarketsFarm, a Glacier FarmMedia division specializing in grain and commodity market analysis and reporting.