Happy August! Markets are waiting for the supply/demand report next Thursday, August 12th at 11 am. There could be some fireworks, as the USDA will release projected yields on corn and beans. Markets are waiting to see if there is any indication of lagging demand.
Crop ratings on corn dropped 2% to 62% good-to-excellent. Overnight market on corn was down but as of writing this, corn is up. On an interesting note, we started the corn ratings at 76% good-to-excellent. The rating has dropped six out of the nine weeks. The five-year rating is 67%. Another note, the crop rating is tracking similar to 2017, which wound up with record nationwide bushels per acre at 176.6. StoneX will release their crop estimate today. Brazil cut their second corn crop again from 60.5 to 59.6 million metric tons (MMT). Total production will be the lowest since 2017/2018 at 87.1 MMT.
The soybean crop rating went up 2% to 60% good-to-excellent. Our five-year average is 65% vs. last year at 73%. Soybeans are under the pressure today with crop rating improving and some indications of lagging demand. Crush numbers for June came out yesterday with lower-than-expected numbers of 161.7 million bushels (mbu) down from last year at 177.3 mbu at the same time. May crush numbers were 173.5 mbu.
With the markets moving so quickly, make sure to have working offers out there. Look at numbers past Fall 2021 and have the conversation with us about opportunities to lock in some profit. Also, if you have working offers, make sure to review them each month.
ALL. TOGETHER. AWESOME.