Tough Week For Corn and Beans
Corn closed 1 to 3 cents lower Friday and for the week December corn lost 7 cents. Even though 16 percent of the corn crop is in some stage of a drought traders are still reluctant to lower this years national average yield. All of North and South Dakota, Montana, Nebraska, and about half of Iowa are in a drought. The key will be will the USDA drop the national average yield estimate from about 171 bushel an acre in Thursday's report?
It was really a tough week for beans last week as November beans lost 56-3/4 cents on the week. Even though beans have had a tough growing season, traders think that good weather in August can make up for it. To a certain extend that is true, as beans can recover with good weather in August and September. However, can they recover from all the cold weather, plus too wet and dry? We shall see what the USDA thinks Thursday morning at 11:00 when the August report is released