3 Big Things Today, August 14
1. Beans, Grains Drop on Carryover Selling After Bearish WASDE Report
Soybean futures were lower in overnight trading as selling carried over from Friday’s World Agricultural Supply and Demand Estimates (WASDE) Report in which the USDA raised its forecast for yield, production, and stockpiles beyond expectations.
The USDA said it now expects soybean production of 4.586 billion bushels on yields of 51.6 bushels an acre, easily topping forecasts for 4.407 billion bushels on yields of 49.6 bushels an acre. The government in July had expected output of 4.31 billion bushels on yield of 48.5 bushels an acre.
Stockpiles are seen at 785 million bushels, up from the prior forecast for 580 million and estimates for 638 million bushels.
Corn production was pegged at 14.586 billion bushels on yields of 178.4 bushel per acre, topping forecasts for 14.411 billion bushels and yields of 176.2 bushels an acre. The USDA last month estimated the crop at 14.23 billion bushels on yields of 174 bushels an acre.
Inventories of the grain are seen at 1.684 billion bushels, beating forecasts for 1.636 billion bushels and last month’s estimate of 1.552 billion.
Soybean futures for November delivery fell 8¼¢ to $8.53½ a bushel overnight on the Chicago Board of Trade. Soy meal futures dropped $1.10 to $322.20 a short ton, and soy oil lost 0.24¢ to 28.17¢ a pound.
Corn for December delivery declined 4¼¢ to $3.67½ a bushel overnight.
Wheat for September delivery fell 8¼¢ to $5.38½ a bushel in in Chicago, while Kansas City futures dropped 9¾¢ to $5.75¼ a bushel.
2. Corn, Soybeans, Spring Wheat Conditions Decline
In its weekly Crop Progress Report, the USDA showed that crop conditions declined for corn, soybeans, and spring wheat.
For corn, the USDA pegged 70% in good-to-excellent condition with 73% at the dough stage and 26% at dent stage.
Soybean condition has dropped to 66% in good-to-excellent condition. Over 80% of soybeans are setting pods.
Just under three-quarters of spring wheat is in good-to-excellent condition. Harvest is underway with 35% complete.