Happy September! The chatter in the market has to do with Hurricane Ida, but that is only 1% of what is happening. Here are a couple of reasons affecting the markets. For the last couple of months, export projections have been less than this time last year, with South America’s corn crop getting bigger because of cycles and more acres. South America is about to start planting again. Looking forward to the U.S. corn crop in 2022 with expanded acres. Higher prices do take a toll on demand. The chatter of being very tight for ending stocks has proven to be false again. Funds continue to stay long in grains with historic position sizes. Freight globally has been impacting all agricultural products.
USDA is set to release its monthly supply and demand report on Friday at 11 am central time. Private analysts have reduced corn yields from 176.5 bushels per acre to 174.4 and beans from 51.5 to 50.0 bushels per acre. These numbers are still higher than USDA’s August numbers.
Exports are starting to resume in the lower Mississippi River, but some exports are unable to reach their facilities at this point. With drought conditions out west and in the northwestern corn belt, watch for corn to flow differently from this last year. There is a significant freight difference from the Gulf to PNW.
With harvest right around the corner, make sure to visit your offers or put offers in. Don’t make decisions based on what the person next door is doing. Make smart decisions and goals for your operation only. Please reach out to any one of us to help you with your goals.
ALL. TOGETHER. HARVEST!
Melisa