Traders are anticipating more bullish news from the U.S. Department of Agriculture on Wednesday.

The USDA will be releasing its final Crop Production estimates for the 2010 crop, along with its latest Grain Stocks report, World Agricultural Supply/Demand Estimates and Winter Wheat Seeding Report.

"These are going to be big reports going into the spring. I expect a lot of volatility after these numbers come out," says Jamie Wilton, senior commodity futures specialist with ScotiaMcleod.

He says estimates for corn ending stocks range from 720 to 780 million bushels. Soybean ending stocks, ahead of the report, are expected to be in the range of 145 to 155 million bushels. All wheat ending stocks are estimated at 835 to 858 million bushels.

"These numbers are extremely tight and will lead to a very nervous market going into the spring," says Wilton. "If we do end up with these numbers, we will need to take price higher to ration demand."

He says markets will be very sensitive to weather challenges in 2011.

"Not only do we have to worry about weather, and weather in South America right now, we do need an additional 8 to 10 million acres planted into corn and soybeans this year just to maintain a supply/demand situation that doesn't get out of control."

Wilton shared his outlook on the markets with farmers in Altona on Tuesday as part of an Agri-Trend Marketing meeting.

~ Tuesday, January 11, 2011 ~