Market News

Brugler looks at objective yield numbers

USDA’s updated corn and soybean production numbers were both down 1% from September, and according to one analyst, the objective yield numbers show a potential for further reductions.

Alan Brugler of Brugler Marketing tells Brownfield better than expected anecdotal yields probably won’t hold up, “They way I’m interpreting that is producers had gotten very negative about their own production prospects because of the weather back in the summertime and also their experience last year.”

Brugler adds, “USDA used a composite of both those producer expectations and their objective yield plots. If you look at the objective yield plot data that came out today [Wednesday], USDA lowered the average test weight for the corn nationally and they also reduced the number of pods per square in their soybean sample, so they’re basically saying in their objective yield plots, the grain wasn’t there.”

Following the USDA numbers, the wheat complex closed down sharply, corn was modestly lower, and soybeans were mostly firm.

Alan Brugler goes over the numbers (3 Minutes, 37 Seconds, MP3)