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.”
“The USDA’s weekly crop progress report pegged nationwide corn planting at 2% complete as of Sunday, a single point behind last year but right on par with the five-year average and pre-report trade guesses.”