Harvest Pressure Threatens Bullish Corn and Soybean Prices

Corn futures prices have been consolidating between $5.24 and $5.49¾ for nearly three weeks, following a strong gain from an August low of $4.57½.

The price rally started after yield reductions for both corn and soybeans were noted on the Aug. 12 World Agricultural Supply and Demand Estimates (WASDE) report.

Private yield tours suggested even lower corn yields, adding to the bullishness along with a sharp rally in wheat and energy prices, drought in Europe, and escalation in the Ukraine/Russia war.

Soybean futures climbed to new contract highs driven by heavy Chinese purchasing and rising corn and wheat markets. Managed money aggressively bought, setting new yearly and historical highs for net long positions.