Markets are higher again this morning with corn up 4, soybeans up 9 and wheat up 15. Yesterday and today’s rally are a result of European and South American weather issues. These issues are pushing Wheat and Soybeans higher and pulling corn along with it.
Friday’s WASDE report from the USDA holds upside price risk on yield and on the inclusion of the FSA acreage data. The October report is where the USDA takes data from the FSA and RMA data and adjusts the planted acres. Yield numbers on corn are expected to drop slightly to 177.7 which is down from the September 178.5 estimate. Soybean estimates are expected to remain unchanged if not higher due to favorable weather. Ending stocks for corn are estimated at 2.113 billion bushel while soybeans are estimated at 390 million bushel.
December corn continues to hang around the $3.88 range on the CBOT and should trade within a 10-15 cent range of this level for a while. With a 2 billion bushel carryout expected now and the majority of harvest ahead of us it will be difficult to get to the next target level ($4.05) until harvest is wrapped up and we have a better idea of production.
Have a Safe Day!