The USDA’s June 10 reports will be closely watched by the grain trade. The big question remains - "Where are grain prices headed this summer?"
The market will be watching the supply and demand numbers for soybeans. Robust soybean demand and questions about South American production has driven futures prices higher the past few weeks to two year highs.
The soybean price rally has several factors moving it higher including the influx of managed money and the weather.
Losses from flooding in Argentina began to turn sales of soybeans and soybean meal back to the U.S., tightening projections for both old and new crop supplies. Business does appear to be picking up a little, and USDA could knock another 15 to 20 million bushels off its forecast for old crop carryout on June 10. But with harvest of some of the hardest-hit areas in Argentina only beginning, the government isn’t likely to change its projections much until more is known about the extent of damage.