USDA Reports Crash Grain Markets
The big moves in the market to kick off this week centered around Monday’s Supply and Demand Report released by the USDA. Average trade estimates for harvested acres on corn were projected at 80 million whereas the USDA released it’s number at 82 million acres. Yield numbers averaged 164.9 bushels across a panel of analysts while the printed number in today’s WASDE indicated a yield of 169.5 bushels per acre.
This led ending stocks to a carryover of 2.181 billion, up 171 million bushels from the previous supply and demand report in July at 561 million higher than the average guess. In the end, corn closed limit down out through July 2020. December new crop closed at $3.9275 per bushel. Soybeans were unable to trade higher with the weight of the corn market but released numbers were a bit more friendly. Harvested acres were estimated near 80 million whereas August USDA numbers came in 4 million less. Yield remained the same at 48.5 bushels per acre. At the close, November soybeans lost 12.5 cents and settled at $8.7925 per bu. The wheat complex saw Chicago fall 25.25 cents, Kansas City was down 24.5 and Minneapolis lost 8.75 cents per bu.
Little activity took place in the CME spot product market to begin the week. Butter traded 5 loads and 2.25 cents higher to $2.3375 per lb. All other product markets were unchanged. Class III markets ranged from 1-12 cents lower August through December. That 2019 average closed Monday with a $17.53 average.