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USDA Unleashes Bears on the Grains || Crop Updates
Though continued weather worries in parts of the Corn Belt kept a lot of attention this week, USDA's reports on Monday -- and the resulting market moves -- ruled the ag news. See all sides of those stories here; it's what you need to know in ag this week.
Weather was the big story early on in the week (pre-USDA reports). Major storms rolled through the Corn Belt, bringing hail, heavy straight-line winds and crop damage to parts of the region. As the week ends, forecasters say dry weather's the main weather theme for the Midwest.
What's that moisture -- that's fallen in near-record amounts in some spots this week -- done to the crops? Check in here as farmers survey their fields. "Might just be a little damp out there? Full moisture profile?" says one farmer.
As farmers are busy walking fields to check yield potential, USDA unleashed sharply bearish numbers on Monday, showing there's a record number of soybean acres planted this year, and there's a lot more corn on hand domestically than a year ago.
"Soybeans are likely to continue their sharp decline" in price after Monday's reports, market analyst Ray Grabanski said after diving into Monday's USDA data. And, "with soybeans likely to continue their decline, corn may follow," he adds. What do you think?
Now, the market faces an uphill climb if the bulls are going to sneak back in, analysts Ron and Sue Mortensen said this week. "A diminishing number of things can provide a bullish spark to the market now. There’s weather, obviously, and then maybe a smaller than expected crop size in the August report," they say.
So, is it altogether "game over" for the markets this summer? "The report was the day the music died. If you didn't have a chair, you'd better enjoy standing for a while," one farmer said this week. What do you think? Where's this market going?
One thing troubling many farmers is the income outlook moving forward -- or rather, the "lack of income" outlook, with corn and soybean returns dipping well into the red, some economists say for this year. It's a hot topic in Farm Business Talk this week. What's your take?
Now, marketing the 2014 crop is now even more of a challenge, especially considering current price levels and corn and soybean yield projections that at this point show bumper crops are likely. "What kind of yields are you ready to market?" one farmer asks.
Monday's sharply bearish USDA grain stocks and acreage reports dominated the ag headlines this week. See all angles here.