Soybeans and corn set back early on profit taking and report positioning, while wheat and cotton bounce.
Shawn Hackett, Hackett Financial Advisors says the market has already traded the biggest yield and ending stocks numbers already.
So, if yield comes in on corn at or under 183 bushels per acre that would be positive and he’s looking for an ending stocks number under 2.0 billion bushels which would be friendly.
For soybeans most of the trade estimates are higher on yield and above 53 bushels but again Hackett thinks the market has factored that in and at one time was trading an over 600 million bushel ending stocks figure.
So he thinks the harvest low of $9.55 on the November contract could be the harvest low.
After the report the markets attention will swing to South American weather and the drought concerns in Brazil.
Wheat sees some short covering as it has uncovered better export demand and dry weather in the U.S. and Black Sea is being watched.
Cotton is up Tuesday but has been disappointing as its been more tied to economic concerns than lower production.
Hackett also discusses what’s ahead for outside markets with the Fed decision next week, the election and the volatility in the stock market.
