Midwest Crop Concerns Boost Corn and Soybean Futures
Corn and soybean futures rose in overnight trading as concerns about crop yields in the Midwest grew.
A group of scouts on the Pro Farmer Crop Tour estimated corn yields in Illinois at 184.2 bushels per acre, down from 199.6 bpa last year and below the three-year average of 199.2 bpa. Soybean pods averaged 1,430.37 in a 3x3-foot area, down from 1,479.22 a year ago but up from 1,389.65.
In Iowa, corn yields were estimated at 191.8 bpa in the northwestern quadrant of the state, 189.7 bpa in west-central counties, and 190.6 bushels in southeastern Iowa, all down from last year's levels. Soybean pod counts in the same areas were also lower than a year ago.
Corn futures for December delivery rose 3¾¢ to $5.01¾ a bushel on the Chicago Board of Trade, while soybean futures for November delivery added 2¾¢ to $12.40 a bushel. Soy meal was up $1.50 to $327.10 a short ton and soy oil rose 0.35¢ to 70.31¢ a pound.
Ethanol production dropped to its lowest level in almost a month, averaging 1.089 million barrels a day in the week ending August 14, down from 1.117 million barrels the previous week. Ethanol inventories rose to 25.121 million barrels, up from 24.798 million barrels and the largest level since May 1.