Grain markets reacting to harvest yields
An ag economist says the corn and soybean markets are reacting to better than expected yields as harvest activity picks up across the US.
Arlan Suderman, Chief Commodities Economist with Stone X tells Brownfield many farmers are pleasantly surprised considering a dry growing season.
“There are problem areas where the drought was really hard on the crop, but when you look at the national crop as a whole it is really surprising for both corn and soybeans.”
He says if the drought had a bigger impact on later maturing crops, yields may fall back as harvest winds down, but the market is growing more comfortable that supply will be adequate to meet lower demand.
“So it is starting to focus more on the slow export pace for both corn and soybeans and the fact that we don’t need as many bushels in order to meet that demand.”
He says their October Production Survey pegs the national average corn yield at 175.5 bushels per acre and soybeans at 50.4 bushels per acre, both up about half of a bushel from September.
The USDA’s next yield estimates come out on October 12th.
Audio: Interview with Arlan Suderman