A lot riding on USDA supply and demand numbers Friday
By Mark Dorenkamp, Brownfield
February 4, 2019
A market analyst says there’s a lot riding on the supply and demand numbers USDA releases Friday.
Global Commodity Analytics president Mike Zuzolo tells Brownfield he hopes the backlog of information answers a very important question.
“Whether the supply is dropping faster from old-crop United States soybeans (from) delayed harvest and Brazilian weather, versus the demand dropping faster when I’m hearing rhetoric a very big sow kill is underway in China numbering in the millions.”
The African Swine Fever outbreak is responsible for the shrinking Chinese hog herd.
He says traders are pushing premium into the futures market ahead of Friday’s report, so there should be opportunities to sell old and new crop soybeans.
“Back at the end of September our low was around $8.10 in lead month futures, so we literally rallied $1.10 to $1.20 per bushel off the lows...
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