We need to take the acreage report with some caution, says Sterling Liddell, vice president, food and agribusiness research, Rabo AgriFinance. In the USDA acreage report released March 31, corn acres weren't a bullish surprise, and soybeans were, he says, but the report is a baseline going forward.
"It's a survey based on last years planted acres," Liddell says. "We still have about 2 million acres floating around, and that will play directly into what happens with soybeans."
He sees prices in the $3.80 range for corn, and in the mid- to high-$9s for soybeans.
"It's going to be hard to sustain any corn rally this year, especially above $4 because we have so much corn carried over," says Liddell.