It was a wild day today after a surprise corn stocks number in the USDA report. December corn traded as low as 26 ½ cents lower on the day before finishing down 9 ¼ at $4.95 ¾. Nov Beans finished up 7 ¾ and Dec wheat finished down 9 ½.
The USDA stocks report was the main reason for corn’s weakness today. The average estimate for corn bushels was 1.407 and the actual came out to be 1.708. That’s an extra 300 million bushel corn that was not expected. Now obviously a lot of people are already attributing this to early harvest, but either way it puts a lot more importance on the October report. An extra 300 million is equivalent to adding another 3.7 bushel onto this year’s crop. The record longs will be really watching the October Supply and Demand report to decide what to do. Expect a lot of volatility in the month of October. Soybeans and wheat stocks came in as expected and were a non event. Corn’s weakness pushed beans and wheat lower throughout the session but beans managed to hold strength and settle higher.
Soybean yields continue to come in well over estimates with many 60-70+ bushel yields being reported. Corn yields continue to come in extremely variable. The market is waiting to see what the next 75% of the harvest brings, with the focus mainly on Iowa and Minnesota.
For those producers looking to catch up on the current recommendations, or if you would like additional coverage as we continue to progress through harvest, please get in touch with your broker.
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