UIUC Weekly Outlook: Focus on South American Weather, USDA Reports
Adverse weather in Argentina driving up corn and soybean prices
The USDA will update the projections of South American corn and soybean production on January 12. The final estimates of the size of the 2011 U.S. corn and soybean crops and the estimate of Dec. 1, 2011, stocks of those two crops will also be released on Jan. 12, he said.
“The estimate of corn stocks will be especially important as it will reflect any changes in the production estimate and the rate of feed and residual use during the first quarter of the marketing year. The trade is expecting a smaller production estimate and a relatively small inventory number,” Good said.
According to Good, the level of corn and soybean prices over the next seven weeks will be extremely important. The average price of December 2012 corn futures and November 2012 soybean futures during February will establish the price guarantee for crop revenue insurance products.
“It now looks as though those prices will be well supported,” he said.
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