Arlan Suderman: Row Crops Grind Higher But Need Supportive WASDE to Confirm a Bottom

Arlan Suderman, Chief Commodities Economist with StoneX, says record yields may already be priced into the market but USDA will need to verify that or corn and soybeans may retest the lows.

Soybeans continue to grind higher on Monday after an ugly technical reversal on Friday pulling corn along for the ride.

Arlan Suderman, Chief Commodities Economist for StoneX, says the rally off of the lows in the grains has been primarily fund short covering.

So, to say the lows are in may be difficult without some confirmation in the WASDE at least the top end yield has been trimmed on corn and soybeans.

He says the big key will be seed size on the soybeans and it’s difficult to say what USDA will find in the field as a cool August usually increases seed size, while a dry August generally decreases seed size.

While Suderman isn’t expecting big changes in the September report he says with the uncertainty about how weather impacted how the crop finished there could be some surprises.

AgWeb-Logo crop
Related Stories
A flash sale of 17.9 million bu. of new crop soybeans to China and another 5.0 million bu. to unknown destinations helped the soybean market rebound says Mike Minor with Professional Ag Marketing.
The latest product in Corteva’s lineup can go on fields as a pre or post, targets more than 36 broadleaf weeds and grasses, and provides up to four weeks of residual control.
Agronomists urge farmers to scout, treat and communicate any significant losses to landlords and bankers prior to harvest.
Read Next
USDA reports on-farm corn stocks up 16% from a year ago, while storage capacity growth has plateaued. Brock’s John Tuttle says commercial handlers are already asking where grain will go when harvest starts — and temporary storage can still be delivered in weeks, not months.
Get News Daily
Get Market Alerts
Get News & Markets App