CORN: 20 higher
REMARKS: OK, so I have to admit that the first thing that popped into my head this morning when I saw the USDA report was the old song, “Hot time summer in the city, back of my neck…” Turns out that the heat has hurt the crop and as a result the USDA gave us a national average yield of 153 bu/acre while also dropping harvested acres by 500,000 to give us a projected production this year of 12914. At the same time they reduced feed usage, exports and ethanol usage to project an ending stocks number for 2010/11 of 940 with the 2011/12 number coming in today at 714 which I believe would be the lowest stocks number in 16 years. The deal I am struggling with is what to call the opening this morning. I am hearing everything from 5 higher to limit higher. The person calling it 5 higher is a friend of my slow cousin Jimmy so I have to kind of discount that. I am going to call it 20 higher to start but I would wait and see the open before I even thought about selling anything.
BEANS: 15 higher
REMARKS: Drown out acres were featured in reducing projected harvested acres by 500,000. Less than desirable weather also played a role in reducing the projected national average yield to 41.4 bu/acre and a projected total production of 3056. The report also whacked off 100 million bushel of demand in order to reach a projected carry-out of 155. As far Brazil goes the report this morning raised their production by 1MMT and increased their carry-out by 2 MMT. The market will be higher out of the chute this morning.
WHEAT: 5 higher
REMARKS: The resurvey of planted acres ended up showing a reduction of acres from the July report in which they projected 56.443 million planted acres of wheat to the 55.183 million that the USDA gave us to contemplate this morning. Total HRS wheat plantings were down 7% from the June 30 report. All wheat production was placed at 2077, down from the 2106 that we had in the July report. By the time that they got done increasing feed usage and reducing exports we ended up with the carry-out unchanged from the July report. Look for wheat to be pulled higher on the strength of the corn market today.