Corn, Soybean Prices Rise as Yields Are Seen Falling
August 21 2019 - 4:50PM
Dow Jones News
By Kirk Maltais
-- Corn for December delivery rose 0.4% to $3.70 1/2 a bushel on
the Chicago Board of Trade on Wednesday.
-- Soybeans for November delivery rose 0.5% to $8.73 a
bushel.
-- Wheat for December delivery rose 0.3% to $4.68 a bushel.
HIGHLIGHTS
Ethanol Output Falls: Ethanol production dropped this week by
22,000 barrels to 1 million barrels per day, the Energy Information
Administration said. Meanwhile, ethanol inventories also fell by
516,000 barrels to 23.4 million barrels.
Traders are more concerned about the decrease in production this
week, said Terry Reilly of Futures International, calling the data
bearish for U.S. corn futures.
From the Pro Farmer Midwest Crop Tour:
USDA Staff Threatened: Officials from the Agriculture Department
left the Pro Farmer Crop tour after receiving a threat against one
of its 15 staff members participating in the annual trip. Hubert
Hamer, an administrator with the USDA's statistical department,
said Wednesday that someone threatened an agency employee on the
Pro Farmer Crop Tour. One of those employees, Lance Honig, the
chief for the USDA's National Agriculture Statistics Service, had
been scheduled to speak at a Pro Farmer event in Iowa City, Iowa,
on Wednesday night.
Young Beans: Crop scouts on the ground at the Pro Farmer Midwest
Crop Tour said that it is tough to make any predictions about what
the 2019-20 soybean crop will look like since the bean crop is at
least one month behind.
"For soybeans, it's really hard to say what will happen," said
Luis Viera, a trader with Kapitalo Investimentos and a crop scout
on the tour.
Indiana soybean-pod figures are down nearly 30% compared with
this time last year, according to Pro Farmer. Noting that Indiana
is now the second state to show a steep decline in soybean pods
this week, Pro Farmer editor Brian Grete said soybean acres are
roughly 30-45 days behind normal. Without very supportive weather,
soybean harvests will almost certainly be negatively affected, he
said.
The tour rolled from Illinois into Iowa on Wednesday.
Hoosiers Edge Buckeyes: Corn yields averaged 161.46 bushels per
acre among 188 samples in Indiana, according to Pro Farmer. That's
marginally better than the roughly 154 bushels per acre reported in
Ohio on Monday. Nebraska yields averaged 172.55 bushels per acre,
Pro Farmer said.
Hopeful on Trade: Many farmers said they think President Trump's
negotiations with officials of the world's second-biggest economy
will yield a better deal for producers of corn, soybeans and pork
despite the short-term pain as China cuts back on purchases of
those and other farm goods from the U.S.
"I think what he's trying to do with trade is justified," said
Brian Grete, an editor with Pro Farmer, the trade publication that
organizes the crop tour.
AHEAD
-- Pro Farmer's Midwest Crop Tour runs through Thursday.
-- The USDA is scheduled to release its latest weekly export
sales numbers at 8:30 a.m. EDT Thursday.
Write to Kirk Maltais at kirk.maltais@wsj.com
(END) Dow Jones Newswires
August 21, 2019 16:35 ET (20:35 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.