US Corn and Soybean Production Estimates Below Expectations - Limit Moves Likely Today

[charliep]

Hang onto your hats - USDA production estimates for corn and soybeans came in low today. Likely limit moves right off the hop.

Becarefull with your emotions in here and stay disciplined/focused on your plan. Weather markets like we are in normally put in a summer peak and then proceed to tail off/drop. Why? High prices kill demand (buyers can't afford prices) and stimulate production/sales.

[charliep]

Just a note the market didn't push limit/has been trading all day. A good indication the survey wasn't 100 % a surprise.

Implications on the feed grain side is that $4/bu feed barley and $5/bu feed wheat are realities based on US corn. Some upward revision in corn yields is possible but the story has pretty much been told.

Soybeans still have some time to increase yields. Strong signals are being given S. America to increase acres over the next 6 months. More nervous about soybean prices.

Wheat - Continuation of what we already know.