Weaker markets to start the week with corn and soybeans down 9 and 5 respectively this morning.
After Fridays report the markets surprisingly closed 7 higher despite bearish news in the report. On Friday the USDA raised the corn yield from 174.6 bu/acre to 176.3. Carryout was increased from 1.242 billion bushels to 1.408. Bean yield increased from 50 bu/acre to 50.6 and carryout was raised from 160 to 185 million bushels. The acres change that many in the trade thought would be up substantially, was only increased 600,000 in corn and lowered 400,000 in beans.
Another Tropical storm is headed into the Gulf and this one is called Nicholas. The storm is supposed to make landfall in Texas late today. Sixty mile per hour winds and rains of up to 8 inches are forecast. Louisiana could see 2-4 inches, which may slow progress on getting the power grid back to normal. So far 3 of the US export facilities are operational in the Gulf. A high-pressure ridge has set up out West and will keep most precipitation limited to the East and far North. Dry conditions will move the crop along and we should see harvest pick up later this week.
Have a Safe Day!