Market Perspective

Last Thursday the USDA released its September Crop Report. With the hot, dry weather the cornbelt has experienced over the last month and the 2-3% decline each week in the condition of the corn crop, the question was how much would corn yields and production drop in this report. The answer was none, in fact USDA increased yields by one bushel per acre and increased production back up to 13.84 billion bushels. While ending stocks for this year were decreased to 661 million bu, the higher production numbers pushed ending stocks for next year to 1.85 billion bu, a very large number. As a result,...