Weekly Crop Commentary - 9/2/2022
Sep 02, 2022
Director of Grain Purchasing
Grain Merchandiser - Kenton (Region 1)
The market is taking reversal action today after a few days of trending lower. Global recession fears continue to creep in, and global commodity demand becomes a worry. If recession sets in, look for demand to drive the market. Without demand, commodity prices could erode into a lower seasonal harvest pressure type of environment.
StoneX came out with their production estimates, and they were much better on corn than Pro Farmer (173.2 vs 168.1). Beans were initially the same (51.8 vs. 51.7). The USDA will be out with their estimates on the September 12. The markets will be closed Monday and will reopen Monday night at 8pm EDT. Enjoy your weekend.
Grain Merchandiser - Upper Sandusky (Region 2)
Can’t believe it’s September already! Where has the year gone? I’m sure we’ll start to see a few loads of early beans coming in within the next 2-3 weeks, as they are starting to turn. The Upper Sandusky bin project is continuing to make progress with the concrete foundation having been poured over the last 2 weeks and getting ready to start putting up structural components.
Markets are making a slight recovery today after a week of profit-taking due to month end and harvest seasonality starting to settle in. StoneX came out with their September crop survey results yesterday and we saw a 2.8 bpa drop in corn yield from August 176 to 173.2 bpa. Increases in corn yield were seen in IL, MI, MN, ND, and OH, but most states saw significant decreases. Beans however, saw a slight increase from 51.3 to 51.8 bpa. Bean yields improved in all surveyed states except KS, NE, and SD which have continued to be 3 of the most struggling states in the western US. It will be interesting to see how USDA responds to yield estimates on the September 12th WASDE. Reminder that markets will be closed on Monday for Labor Day. Lots to look forward to on this holiday weekend. Please be safe out there! Good luck to Hancock County Fair Exhibitors this week, Hardin County next week, and Wyandot County the following week! Don’t forget that Ohio State football is back tomorrow night against Notre Dame. Go Buckeyes!
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There were no big reports released this week, so it was another week of being stuck in this range for the grain markets. We have seen an uptick in export sales for corn the last couple weeks, and we got confirmation of another reportable sale earlier this week that will be on the next report.
Well, here we are at the end of yet another week. Hard to believe we’re into the back half of January. Last week the markets ended the week on fire from the USDA reports and they continued into the start of this week...
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