In our Friday podcasts featuring the Bull Bear Banter, we always like to wrap up the week’s info with a short segment we call, “Why does it matter?” So, with that thought in mind, let’s talk about why the upcoming WASDE report matters.
While the August WASDE report is usually given a lot of importance by traders and many in the ag industry, this year’s report takes on even more weight. As you already know, the National Agricultural Statistics Service (NASS) re-surveyed farmers in 14 states. Instead of relying on earlier information and tweaking it like usual, the folks that release the WASDE will use this new acreage data to drive the supply side of the report. The last numbers we saw from USDA, came from their June 28th acreage report and showed corn was to be planted on 91.7 million acres and harvested from 83.6 million. For soybeans, the planted acre estimate was 80 million with 79.3 harvested. Many in the industry have expressed skepticism about these acreage estimates.
While we are primarily interested in corn and soybean production, they gathered new data for all crops in 10 states (Illinois, Iowa, Indiana, Michigan, Minnesota, Missouri, Nebraska, Ohio, South Dakota, and Wisconsin), and they re-surveyed certain crops in Arkansas, Kansas, New York, and North Dakota.
So, it will be good to get the updated numbers from this report. A lot of attention will be placed on the planted acres, especially for corn, we’re going to be taking a close look at the Harvested Acres estimate, as well as any updates to yields.
There have been many articles written and stories shared about what to expect, but at this point, it’s really a big guess. These August numbers will be used by the industry until reports start coming in from the fields during harvest, so this really is an important piece of information to be concerned about.
Our suggestion to anyone holding on to any unsold Old Crop, whether corn or soybeans, is to put in an offer ahead of next Monday’s 11 AM report. Sometimes, the market will swing up and/or down significantly in the few minutes following WASDE reports. Those with offers in ahead of time generally have a better chance of getting filled at the levels they are looking for than those that wait to see what the USDA says in the report. We also suggest you review your New Crop sales and if you are behind where you would like to be by mid-August, put in an offer or two there, as well.
Just talk to your local GMA or Customer Service Specialist if you want to put in an offer. You can always call the toll-free number of 877-778-2226 for assistance with anything grain marketing related.