The release of USDA's October reports created a rally in soybean prices that pushed November soybean futures prices to levels not seen since the end of July.
A weather outlook for Brazil indicates continued dryness, which may delay planting even longer and have implications for second-crop corn planting in the region.
Despite large production, U.S. soybean prices may have long-term support due to increasing demand and usage.
The August Crop Production report surprised many market observers by forecasting 2017 corn production at 14.153 billion bushels.
The larger-than-expected production levels for both crops sent harvest futures prices to lows not seen since late in June.
While market observers focus on the changing outlook for corn and soybean yields, export markets continue to reveal consumption information relevant to price formation.
The volatility in price movements associated with weather will continue for the next six to eight weeks.
Recent volatility in corn prices indicates concern about the 2017 U.S. corn crop.
The Acreage report surprised many observers and generated strong positive movements in corn and soybean prices.
The 6/1 soybean stocks estimate may not provide new info, but the implications for bean prices in the Acreage report could make for a long summer of depressed prices.