USDA Report Looms as Hot Weather Threatens Grain Yields

The agricultural markets are expected to remain relatively stable ahead of the upcoming USDA report on Wednesday. Analyst Tom Lilja noted that hot and dry weather is threatening U.S. grain yields, which could impact prices. In the meantime, soybeans have been showing modest gains on the Chicago Board of Trade.

The average yield for 2026-27 soybeans is projected to be 52.9 bushels per acre, slightly below the previous estimate. Production is expected to be 4.472 billion bushels, down from the July estimate but higher than the previous year's total. Ending stocks for new crop soybeans are forecasted to be 302 million bushels, a decrease from the July estimate and the previous year's total.

Corn has been steady on Monday, with rising crude oil prices contributing to the stability. However, rain in the U.S. Corn Belt is expected to provide ideal conditions for pod-filling and pod-setting. The projected average yield for 2026-27 corn is 182.3 BPA, down from the previous estimate.

Wheat was mixed at the end of Monday trading, despite conflict in the Black Sea. Analysts are anticipating a decrease in wheat production for 2026-27, with winter wheat production expected to be significantly lower than the previous year's total.