3 Big Things Today, August 24
1. Corn, Soybeans Slightly Higher Overnight as Traders Await Tour Results
Corn and soybeans were just a bit higher in overnight trading as investors await the final results from the crop tour that wraps up today.
Scouts have been looking in fields from Ohio to South Dakota and will meet today to tally the final numbers. As expected, results by state have been variable with the tour finding worse-than-average yields in Illinois yesterday and seeing better-than-expected results in western Iowa.
Still, the driest counties in Iowa haven’t been scouted, so the Iowa average may decline, analysts said.
Prices yesterday ended mixed with corn lower and soybeans higher, as investors weighed a weaker dollar overall against uncertain yields.
Soybean futures for November delivery rose 3¾¢ to $9.41¾ a bushel overnight on the Chicago Board of Trade. Soy meal added 80¢ to $297.30 a short ton, and soy oil futures gained 0.16¢ to 35.22¢ a pound.
Corn futures for December delivery rose ¼¢ to $3.56¼ a bushel in Chicago.
Wheat for December delivery added 1¾¢ to $4.31¾ a bushel in Chicago. Kansas City futures gained 1¾¢ to $4.27½ a bushel.
2. Crop Tour Forecasts Lower Yields Year to Year in Illinois; Allendale Releases Estimates
Corn yields in Illinois looks to be below the prior three-year average, while Iowa growers will be pleased with their crops.
Illinois corn yields are forecast by the Farm Journal Pro Crop Tour at 180.7 bushels an acre this year. That’s below the prior three-year estimate of 187.4 bushels an acre, according to the tour.
Last year, Illinois corn growers harvested 197 bushels an acre, according to the USDA.
Soybean pod counts in a 3×3-foot area were estimated at 1,230.8, just below the three-year average of 1,269.2, tour participants said.
In western Iowa, however, the average forecast for corn yields was for 181.2 bushels an acre, above the average of 175.9 bushels, data from the tour show. Yields in the state, as a whole, last year came in at 202 bushels an acre.
Soybean pod counts, however, were down from the average. Pods in a 3×3-foot area were reported at an average of 1,092.8, well below the three-year average of 1,238.4.
The weather in western Iowa has been good with ample rainfall and plenty of sunshine this year, but results from southern counties where it’s been dry haven’t been tabulated yet and are set to be released today.
The crop tour wraps up today with yield forecasts from the entire tour being released.
Allendale also released its yield estimate for corn yields in the Midwest.
In South Dakota, yields likely will be 139 bushels an acre, down from USDA’s August estimate of 140 bushels. Nebraska growers will likely harvest 185 bushels an acre, up from the government forecast for 183. In Ohio, yields are pegged at 172 bushels an acre, just above the USDA estimate.
Indiana yields are seen at 167 bushels an acre, well below the USDA August forecast for 173 bushels. In Minnesota, the yield is pegged at 186 bushels an acre, up from the government’s projection of 183 bushels, according to data from the firm.
Iowa yields likely will come in around 180 bushels an acre, below the USDA outlook for 188 bushels. Illinois yields were seen at 183 bushels an acre, down from the agency’s August guess of 188 bushels, Allendale said.
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3. Tropical Storm Harvey Gaining Strength as it Heads For Texas
Tropical Storm Harvey is headed toward the Texas Gulf Coast and is expected to bring heavy rainfall to much of the eastern part of the state starting today.
Hurricane, tropical storm, and storm surge warnings have been issued along the coast with flash flood watches posted as far inland as San Antonio. Heavy rainfall, life-threatening flooding, strong winds, and extreme surf are expected with the storm, according to the National Weather Service.
Weather forecasters yesterday were saying the storm is gaining strength as it moves toward Texas and could become a hurricane by the time it makes landfall.
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