Soybeans make fourth straight contract high
Soybeans traded both sides of even money, settling slightly higher at the closing bell. November soybeans have now set contract highs in the last four straight sessions. The Linn group pegged yield at 41 bushels to the acre, only slightly below USDA’s August estimate of 41.4 bushels to the acre. However, they dropped harvested acreage to 73.1 million acres, 600,000 acres below USDA. That means Linn’s total production number is 59 million bushels below the August number.
Corn finished lower Wednesday after trading both higher and lower during the session. DTN cites the market as being overbought, which could lead to additional losses near term. However, private yield and production estimates are well below USDA’s August estimates. The Linn Group projects yield at 149.1 bushels to the acre on harvested acreage of 83.1 million acres, both well below USDA’s August numbers of 153 bushels to the acre and 84.4 million harvested acres. It also puts total production at 12.391 billion bushels, well below the current 12.914 billion bushels. It’s widely expected that USDA will lower its numbers in the September report, which should keep strength in the market.
Spring wheat rallied, creating a good showing at the Minneapolis Grain Exchange Wednesday providing spillover support to Kansas City and Chicago. Chicago futures spreads have strengthened this week, indicating wheat’s commercial side is growing more bearish toward longer-term supply-and-demand. This could ultimately weigh on all three markets, though continued strength in the row-crops should limit the downside.