Good morning,
Weaker markets to open the day with corn down 22 and soybeans down 64.
The USDA did end up adding to old crop stocks in corn and beans Friday. The cut came from ethanol grind and exports. The US has sold very little corn in export and soybeans have seen net cancelations. This was not a surprise and we guessed as much. The USDA did end up lowering corn yields from 177 down to 175.4 due to hot dry weather. Corn carryout was slightly lower at 1.388 vs 1.470 in July.
The USDA raised the bean yield from 51.5 to 51.9. This would be a new record sized crop for soybeans. The USDA also set bean carryout higher at .245 vs .230 in July. How corn trended lower in yield and beans higher, we do not know. I was guessing they would just leave it the same as July as August weather makes the bean crop and final yield is far from known. The USDA made almost no changes in wheat, raising the yield by .2 bushels per acre.
The 7-day forecast has rain moving into Nebraska, Western Iowa, Eastern Kansas and Missouri. Totals will be from .5-2.5 inches. The driest areas of the drought look to have a shot at significant rain this week. Temps are cooling down and the ridge has moved the far Northwest allowing the cool front to bring thunderstorms. Temps look to be cool for the next 15 days.
I think we stay rangebound for the balance of the month. Corn has an open chart gap at 5.85.
Have a Safe Day!
Garry Gard
920-348-6844
