USDA reduced corn yield estimates one bushel and raised bean yield estimates two bushels. The market reacted with corn prices decreasing 4 cents and bean prices 14 for the week. This isn’t unusual though. Prices typically trend lower from the report until right before harvest. It’s happened 13 out of the last 15 years.
I rarely mention wheat, but right now it’s important to understand how it’s impacting the market. Simply put, there is too much wheat in the U.S. and globally. This is keeping prices low enough to encourage its use as feed instead of corn. This could have a large impact on corn demand going forward.
Also, these lower prices may impact acres next year. There were already 4 million fewer wheat acres this year (7% less). These lower prices may motivate farmers to plant other crops. While some may plant small grains, or cotton, many will likely plant corn or soybeans. … Continue readingRead More »