Where Are Markets Going?

This is Matt Rice with the Market Line Report. Today we're here live in Kansas City with David Widmar from Purdue University in relations to the CME to discuss grain commodities and what we can expect to see in the future.

Widmar "So, what we have right now is the US crops ramping up, we're getting a good feel with the sizes. The USDA's adjusting their estimates, but we're getting a good little tight nit. So the next big question is what happens with the South American crop? Of course that provides us with a lot of market rallies late in the spring whenever the shortage in the soybeans emerged. So all eyes are going to focus on that South American crop, size of that when we look at the supply to use ratios. Soybeans are going to be the ones that might have the most rally, in the tightest situation. We asked producers last month, how many of them expected corn prices for the July 2017 futures contract to go above $4 between now and next summer? A full third of said they thought that, on the other hand a quarter of the thought that bushels would fall below $3 per bushel. So the producers are on both sides of the spectrum."