CNS Canada — Corn and soybeans at the Chicago Board of Trade advanced ahead of a key report due out at the end of the week — but from there, it’s back to weather-watching, one analyst says.
The U.S. Department of Agriculture is set to release its supply and demand estimates on Friday.
“There are some trimming expectations to what the ending-stock projections may be,” said Mike Jubinville of ProFarmer Canada.
The estimates will also include the government agency’s first official forecasts of 2017-18 crop production and usage.
Investors still have questions about how much corn was replanted, and the quality of the crop following wet conditions in the Corn Belt.
Soybeans may see an increased number of acres, as area intended for corn or spring wheat may have shifted into the oilseed, Jubinville said.
Once the report is released, traders will be watching the weather to see how the crop shapes up.
“Until such a time that they have a sustained weather threat — and that’s just not on the horizon today — it would be hard for me to suggest significant upside potential,” Jubinville said.
Since last week, corn prices have gained close to 13 cents per bushel in the July contract, closing at $3.8475 on Wednesday, while soybeans advanced about 15 cents to close at $9.3075 (all figures US$).
— Jade Markus writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.