The markets are taking a hit this morning with corn down 8 and soybeans down 14.
Yesterday’s USDA report lacked any bullish news as ending stocks and production were both raised from the last report. They also made no changes in the exports for corn or beans. Cuts in corn exports will be coming, they just didn’t happen on this report. They did raise the crop yield .4 bpa for corn and .2 bpa for beans. The reason from the USDA was very little harvest loss as weather was excellent and the crop was taken out quickly.
USDA export sales were 322,500 mt of wheat, 265,300 mt of corn, 794,800 mt of beans, 13,700 mt of beef and 10,800 mt of pork. China was a buyer of almost all the beans and none of the corn or wheat. This is the third time corn sales were below wheat and are dismal.
The USDA Report has come and gone with mixed results. Ending stocks are tight which will keep prices elevated into the winter. South American weather will become the driver in beans in the coming months. High interest rates, low exports and the high dollar will cap rallies. Basically, prices are going to remain range bound. Many are looking for a post-harvest rally, but I don’t see it coming like it did the past couple years.
Have a Safe Day!