Markets were up yesterday due to drier weather in the forecast and positioning in front of the USDA report on Monday. This drier forecast is hitting the corn east of the Mississippi during pollination which has the potential to trim yield further. The strength in the market is somewhat was limited by poor exports as corn exports remain disappointing at 43,000 mt last week with trade expectations at 100-300K mt. Depending on how many bushels China carries into next year, soybean exports may not meet USDA projections. The trade is wrestling with shorter supply versus softer demand. Rueters is forecasting 87.998 million planted acres of corn with yield at 164.9. This would total 13.191 billion bushels for the corn crop. On beans the forecast is 81.006 million acres with a 47.6 bushel yield. This would equate to a 3.8 billion bushel bean crop.
As the trade struggles between weather, short supply, and weak demand, this is a good time to meet with your local Grain Marketing Advisor to help identify risks and opportunities in this market in order to have a strategy for your business going forward.
Reminder: All price later contracts must be priced or rolled by August 16th at 1pm. Contact your local GMA or Customer Service Specialist for assistance.