Corn bulls beware, while soybeans poised to surge

Wheat trading sideways...

Cornfield, corn Cornfield, corn

Corn: Monday morning, trade released the average estimate on yield at 120.6, which is only looking for a 2.8-bushel decline. Trade is also looking for a drop in harvested acreage of 1.2 million acres. While the drop in yield is agreeable, we see the drop in harvested acreage as being too aggressive for this particular report. In all, this report should be slightly bullish from current prices. This means we can still look for a bounce Tuesday, but we should lower expectations of just how much to expect. Anything over 800 will look like an attractive sell now…Ryan Ettner
 
Soybeans: The bean market could be explosive if we do see any issues with the South American crop. The trade is expecting 2.657 billion bushels of production and harvested acres of 74.447 with an average yield of 35.792 bushels per acre. The trade feels that the rains we received through August was enough to stabilize yields amid one of the worst droughts in U.S. history…Cordon Sroka
    
Wheat: Allendale anticipates the wheat market will continue to chop in a sideways range as it awaits Wednesday's USDA numbers. The shrinking U.S. corn crop should be supportive as more wheat is needed to be fed to offset the corn production losses. Rallies will be limited due to the U.S. currently selling wheat higher than the rest of the world but this premium is shrinking as exporting countries exit the market…Jim McCormick

About the Author

Ryan Ettner is a registered commodities broker and grains analyst at Allendale, Inc. Steve Georgy is a Sr. Broker/Manager at Allendale, Inc. Jim McCormick is Senior Broker/Manager at Allendale, Inc. Allendale is registered with the CFTC and NFA and is a member of the NIBA. www.allendale-inc.com

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