The markets have bounced back this morning after the sharply lower trade we saw last night as the election was coming to an end. As we head to the break, corn is down $.03, soybeans down $.02 and wheat down $.04. The dollar has bounced back and is currently trading about 115 higher with crude oil near unchanged. We have the USDA report at 11am with not much to talk about until we see the numbers. The average trade estimates look for the corn yield to be lowered .4 of a bushel with the soybean yield raised .6.
The last few days I have been worried about the USDA raising the corn yield. I said that could be the surprise to this report. Surprise!
-Corn yield raised 1.9 bushel per acre to 175.3 from 173.4 last month
-Crop raised 169 million bushel
-Milling raised 60 million with Ethanol grind raised 25 million
-Net result corn carryout raised 83 million bushel to 2.403 billion bushel
-Soybean yield raised 1.1 bushel per acre to 52.5 from 51.4 last month
-Crop raised 92 million bushel
-Crush lowered 20 million with exports raised 25 million
-Net result soybean carryout raised 85 million to 480 million bushel
The report was bearish, bearish and a little more bearish! As we wrap up harvest in the weeks ahead, the trade really has only the weather in South America to focus on for a price recovery. December corn closed down $.135 at $3.4075 and has not traded this low since October 13. January soybeans broke below $10.00 and closed down $.2025 at $9.91. Kudos to all our producers that have been selling beans since October 26 when futures finally moved back to $10.20 to $10.30.