The Department of Agriculture is forecasting a record U.S. soybean crop and the second-largest corn crop ever. But thanks to tight global soybean supplies, soybean prices should be under less pressure than corn prices where the huge crop is giving a bearish tone to the market, according to Terry Francl, American Farm Bureau Federation senior economist.
Yesterday, USDA released its first forecast of the fall harvest based on field surveys, which makes it particularly significant for the market as producers begin to set their sights on harvesting and selling their crops, Francl said.
“The overall tenor of the report was bearish for corn and wheat and neutral to slightly supporting to the soybean market,” Francl said. “With regard to corn, the old adage ‘that big crops tend to get bigger’ is likely to prevail in the market, unless some unforeseen weather problems develop.”