Corn futures and soybean futures initially went limit down following today’s USDA Crop Production report which increased corn and soybean yield estimates significantly. Corn futures ended the trading day down .195 cents at $3.68 per bushel and soybean futures down .615 cents to end the trading session at $9.10 per bushel at the Chicago Board of Trade.
Today’s report is the first survey-based yields for corn and soybeans which obviously came in much greater than analysts had predicted. For corn, the yield is estimated at 168.8 bushels per acre – much higher than the anticipated average of 164.5; and soybeans now have a current yield estimate of 46.9 bushels per acre when experts were expecting an average 44.7 bushels per acre.
Nicholas Medina, a futures and options specialist for Capital Trading Group in Chicago, had this to say regarding the fundamental assessment of the corn futures & soybean futures markets, “Not a darn thing bullish in today’s USDA report.” Medina adds, “We expected good yields with the favorable weather the Midwest has been experiencing, but nothing like today’s numbers.”
Corn futures and soybean futures trends are down with no bottom yet in sight. I expect these markets to fall further over the next two months as we get closer to the harvest period.
ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION.
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