Even With USDA Report Corn and Beans Hold
It could have been a tough week for corn last week with harvest pressure and the USDA Report. However, corn held pretty well and only lost 2 to 3 cents on the week. Harvest continues to drag along with all the cold wet and snow. That likely limited harvest pressure along with the common theme from farmers that the corn crop or yield is not matching the USDA's lofty projections!
The USDA Report Thursday dropped the national average corn yield more than expected but still a record above last years record. The shocking part of the USDA Report was that the USDA more than doubled the world carryover! The USDA said China had more than a billion more bushels of corn stocks then the USDA projected in previous monthly reports. That took corn down hard but by the close Thursday corn actually was a penny higher. It looks like the market did not believe the USDA China corn stocks number!
The USDA Report was pretty bearish for beans too. The national yield was dropped by a bushel an acre. However, the USDA increased the bean carryover from 885 million bushel to 955 billion. That is getting close to a billion bushel bean carryover. That took beans down about 15 cents a bushel but by the close beans were about unchanged. Plus beans closed higher Friday 7 to 8 cents a bushel. It seems the bean market does not believe the USDA carryover projection either!