Corn down 8 to 12
Soybeans up 5 to 8
Yesterday corn and soybeans started off the day trading a little lower until 11 AM when we saw the release of the August WASDE report. This drove corn much lower and soybeans followed, leaving corn down the limit of 25 at the close. November soybeans ended the day down 12 1/2. USDA increased corn yield from 166 bu./acre in the July report to 169.5 bu./acre. They left soybean yields at 48.5 bu./acre. Soybean acres planted and acres harvested were both reduced which, in turn, took the production number down, but surprisingly the trade didn’t seem to acknowledge these numbers with corn down hard. According to USDA, corn production will be down 4% from 2018 and soybean production will be down 19% from 2018.
Yesterday afternoon we also saw the release of the Crop Progress Report which showed 39% of corn currently in the dough stage; well below the five year average of 61%. Overall conditions showed that 30% of the corn is in fair condition, 47% in good condition and 10% in excellent condition. Currently, soybean blooming is at 82%, down from the five year average of 93%. Perhaps even more concerning is 54% of soybeans setting pods while the five-year average is 76%. Overall conditions showed that 33% of the soybeans are in fair condition, 45% in good condition and 8% in excellent condition.
It's always said that soybeans are made in August, so weather scares will continue to have a key role in the market, especially if the Eastern Corn Belt continues to stay dry. Another item to keep an eye out for will be crop tours starting up soon, including the Pro Farmer Tour starting next week, on Monday, August 19th. This will be a great opportunity to hear and get an idea of what the crop looks like out in the area inside and outside of Iowa.
Now is a good time to set up a time to meet with your local Grain Marketing Advisor and finish up your plans going into harvest, and place offers for potential weather rallies.