Secretary of Agriculture Says Beans Will be $10 by Fall
On Friday the USDA released the acres and stocks report at 11:00 am. I liked one trader's description, it was a "nothing burger." Yes the numbers came in pretty close to the average trade guesses for both the acres and stocks. It was a brutal June for corn and soybean prices and while the USDA report on Friday did not take corn and soybeans lower thy did not close a lot higher either. Remember supposedly the big selloff in June was because of trade war talk with Mexico, Canada and especially China.
The big reason corn and soybeans sold off in June was fund selling. They went from long to short very quickly. Gordy from Chidodo Commodities mentioned a news story that is not getting any attention but could be very important. It was a news clip of Secretary of Agriculture Perdue saying that bean prices would be over $10 again by fall. The Trump Administration has said it will "take care of farmers' during all this trade war talk.
So, does Secretary Predue know that all this trade war and tariff talk will be resolved soon? Does he know that the USDA will lower bean production this year resulting in higher prices, like $10 beans by fall? If beans hit $10 wouldn't that mean corn should be over $4.00 a bushel? Like Gordy said "if the Secretary of Agriculture says something we should maybe pay attention."