Grain markets turn to WASDE for guidance
Head of Commodity Strategy
Summary: All four major crop contracts have turned lower ahead of today’s WASDE report which undoubtedly is going to provide some additional volatility.
Last week a small letup in the rain allowed farmers to make a final push to get as much corn in the ground while the progress for later planted soybeans also picked up. Some losses will occur, and today’s report will give us the first clues about the impact on yield, production and stocks at the end of the current 2019-20 season.
Wheat, meanwhile, has also turned lower following an initial scare about wet weather damage to the winter crop. The condition of the emerging spring wheat crop has been rated at 81% "good to excellent". Adding to the pressure on wheat have been reports that major competitors led by Russia expecting a significantly higher yield this summer compared with last year's drought-reduced output.
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