Crop yields guessing game continues
- We are again living that famous blessing or curse, “May you live in interesting times.” Some news items are very similar to last year. Trade disputes and the lack of progress on trade agreements dominate the demand discussion. There is a round of trade aid on the way. Weather issues have significantly impacted farmer decisions. Old crop supplies remain substantial. But a few things have changed. The weather issues were large enough that planted acreage is still unknown. The corn and soybean crops are generally one to two weeks behind in development, so we’ll need a long fall to achieve full maturity. But the largest change is the return of potential profitability in the corn market, with cash prices hovering around $4 per bushel for harvest delivery. While the soybean market continues to feel the pressure from the U.S.-China squabble, corn prices have strengthened enough to offer good returns throughout the summer.