Does the soybean rally have legs?Does the soybean rally have legs?

USDA’s January reports are known for producing big surprises, and Thursday’s data dump didn’t disappoint. USDA slashed its estimate of 2016 soybean production, triggering a big rally that yielded to a little profit taking overnight. While old crop wheat news was bearish due to lower feed usage, the agency’s first survey of winter wheat seedings showed acreage down 10% to the lowest level since 1909. Now traders are wondering how much of that ground will end up planted to soybeans, which enjoy a good price advantage over other crops.

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Senior Editor Bryce Knorr first joined Farm Futures Magazine in 1987. In addition to analyzing and writing about the commodity markets, he is a former futures introducing broker and is a registered Commodity Trading Advisor. He conducts Farm Futures exclusive surveys on acreage, production and management issues and is one of the analysts regularly contracted by business wire services before major USDA crop reports. Besides the Morning Call on www.FarmFutures.com he writes weekly reviews for corn, soybeans, and wheat that include selling price targets, charts and seasonal trends. His other weekly reviews on basis, energy, fertilizer and financial markets and feature price forecasts for key crop inputs. A journalist with 38 years of experience, he received the Master Writers Award from the American Agricultural Editors Association. And you can follow Farm Futures throughout the day on Twitter at www.twitter.com/farmfutures.