Suderman says ethanol demand has been better than expected, along with feed demand. He says USDA might adjust U.S. soybean exports lower because Brazil remains competitive due to good soybean supplies and a better price.
“I think everyone’s just talking about tight soybean stocks and there is some risk USDA might cut exports to build up those ending stocks.”
Suderman says he’s also interested to USDA’s estimate on new crop soybean production in Brazil.
“USDA I think is probably going to disappoint. I think the market is looking for a number around 151 million metric tons in this report and I don’t think USDA will go lower than 154 million metric tons in this report, simply because they like to be conservative.”
USDA will release its January supply and demand, crop production and quarterly stocks reports on Friday at 12 p.m. eastern, 11 a.m. central time.
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