“The Trump administration will spend up to $6.2 billion this fall to shield crop and livestock producers from retaliatory tariffs imposed by China and other trading partners, said Agriculture Secretary Sonny Perdue on Monday.”
If you are reading the news in our morning reports, you’ll know most analysts and market-watchers are expecting the Aug. 10 USDA report to bump up its yield estimates for corn and soybeans.
In its monthly supply-demand reports of the past three months, the US government has been projecting an average corn yield of 174 bu/acre and an average soybean yield of 48.5 bu/acre. These projected yields are based on calculations taken from previous years with an adjustment factor for a rising yield trend.
Importantly, the Aug. 10 report will be different: it will be based on surveys and field-gathered data. A lot of predictions are circulating about what it will say.
“Traders blame much of the recent steep decline in prices for soybeans and corn on the intensifying trade quarrel between the US and China. They’re right, but it’s a dispute that may eventually feed still more demand for these crops.”
“July weather is usually the key metric for determining corn yields, and most years, prices. But without gaining some backbone soon, futures’ rallies in a month or so may be short, and maybe not all that sweet.”