USDA Yield Cut Looms as China Restores Soybean Demand
The U.S. grain market is at a critical juncture as China returns for American soybeans and traders await the USDA's crop production report, expected to lower corn and soybean yield estimates.
Corn futures have risen after five consecutive declines, with December contracts trading at $5.32 per bushel, near their three-year intraday high of $5.4975 established on September 2.
The national average cash corn price is around $4.81, while the basis stands at 46.75 cents below December futures, making storage, basis improvement, and immediate cash needs key considerations for growers approaching harvest.
The USDA's crop production report may cut corn yield estimates by 2.5 bushels per acre to 178.2 bpa, down from the August estimate of 180.7 bpa, which would push estimated corn production down to 15.785 billion bushels, compared with the USDA's previous forecast of 16 billion.
The market is also closely watching China's renewed demand for U.S. soybeans, which has helped November futures climb 9 cents overnight to $13.185 per bushel, near a 2½-year intraday high of $13.24 reached on September 2.