Corn and Beans Could Have Been Worse!
Corn lost about 2 cents a bushel last week but that was 9 cents off the lows. It could have been much worse after the USDA raised the national average yield form 169.5 to 169.9 bushel an acre in Tuesday's Supply Demand Report. The average trade guess was for the USDA to lower the national average yield to about 167 bushel an acre. Just like last month many traders are questioning how the USDA raised the corn yield. In addition to all the issues we had during the growing season the weather has not been favorable for a good finish.
It was a similar story in beans last week. November beans gained 6-3/4 cents higher and that was 30 cents odd the lows. The USDA slightly raised the national average bean yield when almost all the traders thought it would be decreased as beans saw the same issues during the growing season. Apparently the USDA used an all time record pod weight to get the big yield estimate. Farmers and traders question how that is possible as we are not seeing good weather for the bean crop to finish? I suspect we will need to get well into harvest before we will know for sure just how big the corn and bean crop is!