Markets are up 3 in corn, up 22 in beans and down 5 in wheat to start the week on forecast for hot and dry weather as Pro Farmer begins their tour this week.
The 10-day forecast is hot and dry and extreme heat is forecast into the beginning of September with another ridge developing. This forecast has the soybean markets strengthening but has not spilled over into corn to the same degree. With an already tight balance sheet, very little wiggle room exists for the oilseed to lose production without prices having to ration further demand. This afternoon’s crop progress reports should show steady to improved ratings vs. last week, but how much will yield potential be dinged over the next two weeks of hot/dry weather?
This year’s Pro Farmer tour kicks off today and goes through Thursday. Last year the markets rallied during this tour as poor yields and trouble areas were identified. It will be interesting to see what they find when they step into the fields this year. In the last 10 years, the Pro Farmer yield estimates for corn were below the USDA 8 times by an average of 4.5 bushels.
Friday afternoon’s USDA Cattle on Feed Report showed all U.S. cattle on feed as of August 1 at 11.030 million head, or 97.7% of last year; that was below the average trade estimate at 98.3% of last year. July cattle placements came in at 91.7% of LY, below the 94.5% guess, with July marketings at 94.7% of LY, a tick below the 94.8% expectation.
Have a Safe Day!