Skepticism over record-breaking crop production estimates explains why the market shrugged off the “hugely bearish” USDA Aug. 12 report, according to Jack Scoville of the Price Futures Group.
“There was a lot of doubt for the USDA production estimates.,” Scoville told AgDay. “They were extremely high and there are a lot of ideas that we will see lower estimates as we go forward,” he explained. Prices could go “somewhat higher … within the next couple of weeks," he noted.
Meanwhile, livestock traders were hoping that a longer grilling season would result in more demand and higher prices, according to Ted Seifried of Zaner Ag Hedge. While traders keep an eye on weights and exports, they’re also hoping for an eventual price surge.
“We have potential to go higher (on prices),” Seifried told AgDay. “But there could be a (time from of) couple weeks, a couple months, where we have to fill in those lower levels a little bit better."