Your Pro Farmer newsletter (July 15, 2023) is now available

USDA didn’t cut new-crop soybean carryover as much as expected in the July Supply & Demand Report, which triggered knee-jerk selling. But the market bounced back, signaling traders feel USDA should have cut its soybean yield projection. The corn data was mostly neutral, as the cut to projected yield offset much of the increase in acreage, which caused corn to be a follower – in both directions. The wheat data was bearish compared to pre-report expectations, though spring wheat crop concerns in the U.S. and Canada allowed the market to avoid sustained selling after the report. While conditions have improved since late June, the drought footprint is still wide, meaning traders will continue to closely monitor weather developments and forecasts. On economic front, U.S. consumer and producer price inflation fell to multiyear lows, causing traders to increase odds the Fed will raise interest rates one more time later this month and then pause the monetary tightening, which triggered a sharp selloff in the U.S. dollar. We cover all of these items and much more in this week’s newsletter, which you can download here.