Markets - General
Both Dan Basse and Chip Nellinger say considering how dry it’s been, crop yields could be falling, and USDA may be forced to make more cuts to the national yield forecasts in upcoming reports.
There are just over two weeks for Congress to pass 12 spending bills to avoid a total government shutdown. If time runs out, one analyst says that could mean no USDA report in October and no yield cuts, which are likely.
Corn and Soybean Markets Lower for the Week Awaiting Confirmation of Lower Yields in September WASDE
Jerry Gulke thinks the corn and soybean crops are getting smaller, and there’s a good chance for a bullish supply shock in the September WASDE report.
Analysts think the recent hot and dry weather could have a detrimental effect on the potential production picture in the U.S., but even with issues, the price story is different for corn than it is for soybeans.
Even with red flags with demand and the economy, the August Ag Economists’ Monthly Monitor shows economists continue to be impressed with the staying power of the U.S. ag economy, as well as the U.S. economy as a whole.
Jerry Gulke thinks USDA will have to lower yields in its next report. He also says he hasn’t seen a late-season weather market like this since 1988.
Whether you have a low-cost operation, a highly leveraged operation or are somewhere in between, it’s a good idea to run an ROI analysis to understand just how good or bad marketing opportunities are at any time.
As scouts set out on the the 2023 Pro Farmer Crop Tour, Iowa will be closely watched as it’s the only state where Crop Tour covers all the state’s counties. Brian Grete says Iowa has a lot of question marks this year.
Row crops post higher weekly closes and could be confirming a short-term low as the market continues to determine yield.
As the Midwest sets to bake in the coming days, the Pro Farmer Crop Tour will be closely followed, especially since traders and analysts are watching to see how soybeans stand up to the heat.