Almost everyone expected USDA’s soybean yield to rise, and instead it dropped a little. At the same time, USDA reported 1.2 million fewer acres of beans and .8 million of wheat since the June report, while corn gained just .3 million. That’s a net 1.5 million-acre loss.
Soybeans got a pop from the acreage and yield combo in USDA’s Friday’s report. But even with those numbers, a huge crop is coming out of the field. If future yields rise, the bloom could be off. “Be ready to gut it out and sell the beans,” says Bill Biedermann of Allendale. “My guess is that if corn hits price targets and stops rallying, beans could sell off the most. Remember, if you do not sell $12 beans, South America will, as they are ready to plant.”