Agriculture News
Specifically relating to agriculture, the Fed noted “reports were mixed, as drought conditions and high input costs remained a challenge.”
Markets reversed their price trends from Thursday in overnight trade, as corn and wheat pulled back while soybeans firmed.
Cash soybean prices continue to fall amid river transportation issues.
As of Oct. 11, 82% of the U.S. was experiencing abnormal dryness/drought, up five points from the previous week. Drought coverage increased in the PNW, Plains, Ohio River Valley and Southeast.
Soybean futures pulled back overnight from their strong gains Wednesday, while wheat traded mildly higher after yesterday’s losses. Corn posted two-sided trade.
Basis for corn and soybeans continues to decline amid increased harvest and low water levels on the Mississippi River.
USDA’s 2022-23 ending stocks forecasts came in higher than expected for corn and wheat, while projected carryover was lower than traders anticipated.
USDA’s Oct. WASDE revealed an additional cut to the national soybean yield to 49.8 bu. per acre (bpa), while pre-report estimates averaged 50.5 bpa. The corn yield landed slightly above the average estimate at 171.9 bpa.
Corn, soybean and wheat futures faced mild selling pressure in relatively light overnight trade ahead of USDA’s October crop reports later this morning.
Weekly export inspections for week ended Oct. 6 reported corn, beans, and wheat within expectations, however corn and bean inspections are now notably behind last year’s, at 9.4% and 23% behind, respectively.
Corn, soybeans and wheat pulled back from Monday’s gains amid corrective selling and weakness in the crude oil market.