Good morning,
Markets were higher overnight with corn up 9 and soybeans up 15.
Pro Farmer will move through Illinois and Iowa today. So far yields have been down from last year just about everywhere they have been.
Day two of the Pro Farmer crop tour found Nebraska corn yields at 158.5 bpa, down from 182.35 bpa LY and the 176.7 bpa 3YA; NE pod counts came in at 1,064, down from 1,226 LY and the 1,245 3YA.
Indiana corn yields were 177.85 bpa, down from 193.5 bpa LY and the 178.3 bpa 3YA; soybean pod counts of 1,166 fell below 1,240 LY but did beat out the 1,148 3YA figure.
Since mid-July, more than 93% of Texas has been in drought, according to the United States Drought Monitor. As of mid-August, more than 26% of Texas was at the highest level, characterized by widespread loss of pastures and crops as well as water shortages. While conditions are especially acute in Texas, about 54% of all U.S. cattle were in some form of drought as of Aug. 16, up from 36% a year earlier. Cattle slaughter is high nationwide, temporarily increasing supply but portending tighter supplies in future years.
With almost all of Texas in drought, ranchers are sending ever more cattle off to slaughter, a trend likely to increase beef prices over the long term due to dwindling supply from the largest cattle region in the United States. This will have an impact on meat prices at the retail level and reduce the feed demand next year.
Have a Safe Day!
Garry Gard
920-348-6844
ggard@didioninc.com
