USDA Yield Estimates Leave Corn and Soybean Growers in Uncertainty

The recent USDA yield estimates triggered market swings in corn and soybeans, leaving growers uncertain about their risk management plans. The monthly crop reports are akin to a reality TV show, but this 'big reveal' was mostly underwhelming.

The average nationwide corn yield estimate was lowered by 2.2 bushels per acre to 178.5 bpa, matching the prediction from Vegetation Health Index maps. November soybean futures ended 35.75 cents lower despite the national yield of 52.8 bpa changing only one-tenth of a bushel.

The volatility was expected, but the impact on growers' plans is significant. Futures prices peaked and closed within predicted ranges for both crops. December corn traded in a 20-cent range after the USDA cut production by over 200 million bushels, ultimately closing lower with a bearish reversal on charts.