Pro Farmer Tour results and Fed Summit watched today.
Corn and soybean prices recovered moderately overnight from yesterday’s profit-taking selling of the early week strength. Pro Farmer tour yield estimates are released today, along with the awaiting Fed chairman Powell’s policy speech from their Jackson Hole summit.
Yesterday’s Pro Farmer estimate out of Minnesota had a corn yield of 190.4 BPA, against 177.4 BPA last year and the three-year average of 181. Minnesota soybean pod counts were 1,100 in a 3’ x 3’ square versus 1,027 pods in 2021 and a three-year average of 1,026.
The French corn crop GD/EX ratings declined to 47%, down 3% from last week with their ongoing drought. Improve rains are in the forecast over the next 10 days. In the meantime, Ukrainian and Russian FOB wheat and corn offers remain depressed, which is a drag on world grain futures. Ukraine FOB corn offers are now $1.00 a bushel below the US Gulf. US dollar strength will be watched today during the culmination of the Fed summit in Jackson Hole. The renewed strength of the dollar will not help exports in the coming months if it occurs. This week’s late summer rally in grain pricing offers an opportunity for catch-up sales for new crops in case values drift into the onset of harvest.
There are no cold temps foreseeable in the forecast that would produce a frost/freeze through September 10. The forecast otherwise is mixed for crop yields with the best chance of rain starting with the shortwave coming out of Kansas that looks to produce needed rain for KS/and Missouri, and IA on the weekend with totals of .2-1.00″. Another system is noted for Monday/Tuesday as a short-wave rides over the top of the Ridge over the western US.
The cattle trade was mostly steady on Thursday after morning weakness that found feeder cattle rallying as the corn market corrected from early day strength. Cash cattle markets were mainly quiet following the trade earlier in the week. Box beef values had choice gaining $0.74 while select was off $.08. The August Livestock Slaughter report showed that fed cattle in July had a kill that was down 4% from a year ago and at a five-year low of 2.1 Mil ahead, while the average carcass wheat was down one pound from last year at 861 pounds. In the data was one less working day for the month, and the per day slaughter was up one percent from a year ago.