USDA Report Leaves More Questions Than Answers for Corn and Soybean Markets
The latest USDA report landed with a thud in terms of market reaction. Corn and soybeans initially moved lower as traders digested the September yield estimates and updated balance sheets.
While some numbers changed, including a production cut for corn and an increase for soybeans, the questions that will drive prices through harvest remain unanswered. Will demand remain strong? How large is the crop really?
The USDA's national estimate hides a very uneven growing season. Iowa improved and helped offset losses, while yields were lowered across much of the western and northern Corn Belt.
The contrast between corn and soybeans is notable. The USDA found enough strength in Iowa, Indiana, Ohio, and Nebraska to raise the national soybean yield slightly, even as North Dakota and Kansas were cut substantially.