By Jon Scheve, Superior Feed Ingredients, LLC
Thursday’s USDA report indicated that last summer’s corn objective yield models might have been more accurate than the subjective based weekly reports after all. This could suggest the current average corn yield, estimated to be nearly 175, may increase again in the January report, which would not be bullish news for corn.
For beans, the USDA only increased the yield slightly and demand remained unchanged. If the estimated export numbers can be attainted, the bean supply will be tight and supportive of prices.
Moving forward both the corn and bean markets will be watching Brazil’s weather the next several months as it is the critical window for crop development. So far, the weather has not been ideal there, but it is still early and growing areas are spread out over a larger area than in the U.S.
Market Action – Capturing carry in the soybean market
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