The government finally gave farmers a friendly report on Monday and the markets showed it.
Green on the screen was a nice way to start a new week and wind down the month of September. With Monday’s run-ups in corn and soybeans, we are looking at a positive September which is something we normally do not see. It is typically a down month with the start of harvest.
“Technically, we are going into October with a strong close in the month of September,” noted Wayne Nelson of L&M Commodities.
Guesstimates were for a 2.428 billion bushel carryout on corn and USDA came up with 2.11. This was way below the lowest guess of what the government might say. The disappearance was better than originally thought which rallied corn about 16 cents on Monday.
Many were expecting a 982 million bushel carryout on soybeans and USDA came out with 913.
“They changed the yield a little bit from last year and the harvested acres a little, but boy that was quite a nice drop there in the beans too,” said Nelson.
Nelson believes these are still big numbers but quite a bit different from what everyone was looking for and it wasn’t quite as bearish. The funds were leaning very short in corn and soybeans.