Weekly Grain Update 9.11.15

Market reaction to today’s USDA report was riddled with volatility but ultimately sent corn higher on the day, pulling soybeans along for the ride.  As printed the report was nothing bullish.  Corn was slightly friendly while soybeans were slightly negative.  Initially November soybeans traded sharply lower but buying in the corn market pulled soybeans back to unchanged.  As always, it is the number as printed that gets the trade reaction, not the actual number.  Headline traders rule the trade on report day.  Sunday night’s open and Monday will be more indicative of future trade direction as the numbers are digested more fully.

National average corn yield was lowered 1.3 bushels per acre to 167.5.  The corresponding reduction in total production dropped expected carryout for next year to 1.592 billion bushel, a net decrease of 121 million from last month’s estimate.

On the soybean balance sheet yield was increased 0.2 to 47.1 bushels per acre.  Given the near perfect growing conditions seen over the past three to four weeks, this small adjustment was taken mostly in stride.  Locally, some concern has surfaced regarding Sudden Death Syndrome and White Mold in soybeans and their resultant yield destruction.  Thus far though, the greater marketplace has not taken notice.

On the cash front, harvest is right around the corner which means the end user is playing a waiting game, buying only what is need to bridge the gap to cheaper, more ample, new crop supplies.  Watch for basis to continue to soften in the old crop, particularly if the board does continue to march higher.

Read Full Market Update

CHS – Rochester Grain Team
Kasson: 507-634-7545 ext 7
Ostrander: 507-657-2234

This Material has been prepared by a sales or trading employee or agent of CHS Rochester and should be considered a solicitation.  The information contained in this presentation is taken from sources which we believe to be reliable, but is not guaranteed by us as to accuracy or completeness and is sent to you for information purposes only.  There is a risk of loss when trading commodity futures and options.  CHS Rochester bases its recommendations solely on the judgment of CHS Rochester personnel.

© 2024 CHS Inc. | Cookie Preferences