CBOT Grain Futures Surge on Supply/Demand Estimates and Crop Tour Data
Grain futures on the Chicago Board of Trade (CBOT) rose during the week ended August 19, driven by bullish supply/demand estimates from the US Department of Agriculture and underperforming yields in corn and soybean fields according to the Pro Farmer crop tour.
The December corn contract increased by 17.25 cents per bushel to close at $4.98/bu on August 19, while November soybeans jumped 54 cents to $12.3725. The new crop demand for corn and soybeans was graded as 'A-plus' and 'A', respectively, with soyoil demand also seen as good due to the addition of new crush plants over the past two years.
Analyst Tom Lilja of Progressive Ag in Fargo, North Dakota, noted that while yields in western parts of the Corn Belt were not surprising, the lagging yields in eastern areas caught the trade off guard. The USDA's August supply/demand estimates had already trimmed yield projections for corn and soybeans despite higher production figures.
According to the Pro Farmer tour, corn yields in South Dakota were down 14.4% from last year at 149.09 bushels per acre, while those in Ohio declined by 3% at 180.18 BPA. Soybean pod counts in South Dakota averaged 945.98 per three-by-three-foot square, which was 20.4% below last year.