USDA Estimates Hard To Forecast

The U.S. Department of Agriculture will be out with its first yield estimates for this year’s crops on Thursday.  It’s all part of the World Ag Supply and Demand numbers.  Joe Vaclavik, founder and president of Standard Grain in Chicago, says the row crop numbers will be the “big ticket” items in the upcoming report.

“This is the first report of the year in which USDA gives us survey based yield estimates.  And, so that’s going to be the most interesting thing in row crops.  As far as Spring Wheat production estimate, I think will also be of interest I think there are a lot of people who think the Spring Wheat acreage  umber, harvested acreage in particular should come down quite a bit.”

Vaclavik said there may be some changes on the demand side of the balance sheet, but still says yield estimates are the biggest part of the report.  He added the trade is generally looking at lower numbers for the upcoming yield estimates.

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