The fundamentals for corn and soybeans are very different right now, and we saw that play out in Chicago with DEC corn trading down 8 to 769 3/4 and NOV soybeans trading up 45 1/2 to 1747.
In this morning's report we once again saw the USDA confirm expectations for Brazilian soybean production in 2012/13 to surpass US production. The chart below shows production figures from 1999-2012, and the 2012/13 projections released today. As you can see, this summer's drought has now pushed US soybean production to the lowest level since 2003. Many in the trade feel even this year's production is currently overstated as the USDA moved yield expectations lower in today's report but left harvested acreage unchanged. This harvested acreage figure is something that will be watched closely in the October WASDE.
Concerns over near term soybean availability and expectations for a massive South American crop continued to push the spread between NOV '12 and JULY'13 higher in today's action, up 12 cents to 174 1/4 cents. This market is telling farmers to sell new crop soybeans right off the combine with absolutely no compensation for storage costs. Want to chart and trade these spreads yourself? Contact us today for a free 10 day trial of our trading platform! 877-472-4607
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