USDA Report May Send Grain Basis Reeling Amid Record Crop Projections
USDA's upcoming supply and demand report could significantly impact grain basis levels, according to market analyst Jim McCormick of AgMarket.Net. The report, set for release on Friday at 12 pm ET/11 am CT, will include yield estimates for corn and soybeans.
McCormick notes that if the USDA keeps the corn yield estimate closer to 180 on the higher end of the trade estimate, it would still result in one of the largest corn crops ever. Similarly, leaving the soybean yield unchanged would lead to the biggest bean crop ever.
The large crop could contribute to on-farm storage capacity issues, as McCormick points out that only about 20-25% of this year's crop has been marketed. This leaves around 75% of the grain unsold, and not all of it can be stored on farm, leading some of it to go to market.
The USDA may also make further adjustments to acreage and demand usage in the report.