“We’re in that situation where if USDA says there’s some more corn or soybeans than we thought or there’s some less, we could have a lot of reaction pricewise in the old crop, especially I think if they say we have a shorter situation where we have less inventory. The reason for that is to get people to cut back on usage we have a very short period to do that and that means you have to have substantially higher prices.”
But Hurt also sees a market that is vulnerable to a USDA report of higher than thought stocks.
The acreage report will reflect data collected early in the month and the attitude is the report will be seen as inconclusive because of the number of acres still not planted today.
“I think we’re always interested to see what USDA has to say on the acreage numbers, so I think we examine it for 10 or 15 minutes and the kind of dismiss it and say we’re just going to have to get more information including the possibility that USDA will announce a follow up survey in some of these states that have very delayed planting to try to get a more accurate number going into August.”
Report release time is noon eastern Friday.