Report negative for prices

Tuesday’s USDA report wasn’t so friendly to crop prices as corn ending stocks were higher than expected and soybean ending stocks weren’t nearly as low as anticipated.

For next year, corn ending stocks are at 1.470 which is up 70 million bushels from last month. Soybean ending stocks are at 230 million bushels which is down 50 million bushels from last month.

“The expectation was for that to be a little lower than that still,” said Aaron Curtis of MIDCO on the CIFN Midday Update Tuesday.

Corn production did increase some because of the higher acres but corn yield did not change. Soybean production was down a bit because of lower soybean acres but there was no change in soybean yield. This is pretty standard for July as USDA typically does not mess with the yield much.

World numbers did not see much of a change. Curtis feels markets won’t spend a whole lot of time focusing on these numbers but will rather focus on outside factors and the weather forecast moving forward.

“Typically, the July report doesn’t move the needle, so to speak, for a very long time,” added Curtis.

Illinois Crop Production information released Tuesday indicated the state’s winter wheat harvested area in 2022 forecast at 720,000 acres which is up 18 percent from the previous year. Winter wheat yield is forecast at 79 bushels per acre, equal to 2021. Production is forecast at 56.9 million bushels, up 18 percent from last year.