The Disconnect Continues
There was a little back and forth in the corn and bean markets last week but by the close Friday we were not far from where we started the week. The disconnect between what is going on in field and traders perception is wider than I can remember in my career. The only close year would be the 1993 season. Remember that year was wet, cloudy and cool. Traders thought we had a great crop until we got well into harvest. I suspect there is a good chance that will be the case this year too!
Of course it all depends on what the USDA has to say in this mornings Supply Demand Report. The average trade guess with yields and acres is wider than I can every remember. There are so many unknowns as to what data the USDA will use. Will they use the Farm Service Agency acres and Prevent Plant acres? With all the rain and drowned out spots in fields all across the Midwest whet will the projected yield be? Finally, how will the USDA handle how late a lot of the corn and beans were planted?