MARKET COMMENTARY

Our markets look to start the day mixed/weaker with the trade still digesting Pro Farmer yields while the cash markets attempt to figure out how to bridge the gap between old and new crop supplies. Cash bean basis (vs Nov futures) has started to work higher this week as certain plants struggle to source soybeans.  Unfortunately for the bulls, this doesn’t have much of an effect on November futures prices as the weight of the big projected crop this fall (as well as good, wet weather forecasts) will continue to keep Nov beans under pressure.

Day 2 of the Pro Farmer tour confirms what most expected: big (record) corn yields in Indiana (185 bpa) and a good corn crop in Nebraska (albeit a little disappointing to some) coming in with just shy of 164 bpa.  Recent history says that Pro Farmer tends to come in a little lighter than the USDA yields but it still a pretty decent measuring stick – they should have their final yield estimate out sometime tomorrow.  The next big USDA yield report isn’t out until October…

Opening Calls

Corn 2 to 4 cents lower

Soybeans 3 to 5 cents lower

Have a great day!

@fccoopgrain