Corn and Beans Down Again Last Week.
It was another rough week for corn. It appears traders are still thinking about the USDA Supply Demand Report the previous week where the corn yield was estimated at 169.5 bushel an acre . For the week new crop December lost 9 cents a bushel. The bears argue that new crop carryover this year is projected to be about the same as this year. The December 2016 contract bottomed at 3.15 so the 2017 contract should work to that level. The bulls argue acres are down this year and the yield is down plus demand is very good at these prices. It seems to me that we will have to get into harvest before we find the yield will be down so I suspect the bears will win in the short term!
Beans saw a hook reversal higher on Wednesday and managed to close higher three days in a row. However for the week, new crop November still lost 7-1/4 cents a bushel. There was some rain in dry areas of the Midwest last week but amounts were less that forecast. It is still August and beans do have the ability to add flowers and yield. The question is how much? Remember the Pro Farmer Midwest crop Tour now called the Farm Journal Midwest Crop Tour is this week. Traders will be watching for any blogs or tweets from crop scouts. A daily summary will be released each evening and the final yield estimate will be Friday afternoon.