Soybeans drops a point and corn remains steady

Andrew Cummings
September 13, 2017

The US Agriculture Department unexpectedly raised its US corn and soybean harvest forecasts on Tuesday, adding further bearish pressure to a market already struggling with massive global supplies. "It seems like this year so far, that's been the case".

Sorghum for grain production in South Dakota also is forecast to decline from last year's harvest.

Soybeans are a similar story with the average trade estimate at 4.328 billion bushels this month on yields of 48.8 bushels an acre.

The crop progress report released September 11 shows a slight drop in soybean conditions but corn remains stable. December wheat delivery rose 7.25 cents, or 1.67 percent, to 4.42 dollars per bushel.

Ending stockpiles in 2016-2017 likely will be reported at 370 million bushels, unchanged from the prior month, while new-crop inventories are pegged at 442 million bushels, down from 475 million a month earlier, the analysts said. Average yield is forecast at 124 bushels per acre, down 34 bushels from previous year.

The state experienced record-setting corn and soybean yields in 2016.

Collection hasn't yet started in Iowa but growers in IL are 2% finished with the harvest and in IN they're 1% complete, the USDA said in a report yesterday.

Chicago Board of Trade corn and soybean futures, which were trading in negative territory before the report was released, dropped to session lows.

USDA noted that its September crop outlook does not account for flooding in parts of southeastern Texas and southwestern Louisiana caused by Hurricane Harvey. The most-active wheat contract on the Chicago Board Of Trade eased 0.2 percent to $4.34 a bushel, having closed down 0.7 percent on Monday, when prices hit a low of $4.31-1/2 a bushel - the weakest since August 31.

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