Corn is down 4 and soybeans are up 4 to start the week.
Favorable rainfall across the belt over the weekend with more in the forecast should keep the markets flat heading into Thursday’s USDA report.
On Thursday the USDA will release their August WASDE report which will feature the first actual estimates of this year’s crops. While some changes are possible, I wouldn’t be surprised if they leave the 2020-21 balance sheet unchanged. Most traders do expect them to adjust the 2021/22 production numbers by lowering yield estimates. The average estimates for corn yield are 177.6 bu/acre compared to 179.5 in July. Soybeans are estimated at 50.4 bu/acre compared to 50.8 in July. While lower, the 177.6 would be a new record yield which will make demand the market driver.
Crop conditions will be out later today, and the trade is expecting a steady to lower G/E number by 2-3%. While the G/E numbers could fall, the percent in dough stage is well ahead of normal which will put pressure on old crop prices.
Have a Safe Day!