Markets - General
USDA trimmed both corn and soybean yield forecast in the September report earlier this week. One commodity trader says USDA’s yield move in September also indicates more yield changes could occur in the October report.
Corn and soybean production will both be down from 2021, according to USDA’s September Crop Production report. That news sent prices higher for both markets.
There are high odds the harvest lows for grain prices were made in July, yet the seasonals suggest otherwise.
For 2022/23, the U.S. corn stocks-to-use ratio sits at 9.6%. Traditionally, a ratio under 12% suggests the need for more acres in the next growing season.
What prompted Pro Farmer to drop its national corn yield estimate below 170 bu. per acre? The story seemed to be just how much damage the heat and drought did to the crop this year, even since August 1st.
In a relatively short time, corn and soybean prices have both gained $1 per bushel. This creates a decision-making opportunity.
On Thursday, corn prices jumped again. Prices are set for an week of back-to-back gains, the longest streak since May 2021.
December corn futures rose to the highest price since late June and soybeans and wheat also rose amid concern over dry weather. Why did corn prices surge? Several bullish factors are at play,
With the price premiums for war, trade distortion, demand destruction and weather fully discounted in the July price collapse, it suggests the stars are still aligned for more fireworks.
The 2022 Pro Farmer Crop Tour kicks off Monday, August 22 in South Dakota and Ohio. As scouts gather thousands of samples across the Midwest throughout the week, traders and market analysts are watching closely.