The WASDE report was released on October 11. Corn estimates dropped six-tenths of a bushel per acre bringing the average down to 180.7 bushels per acre. Soybeans took an opposing direction and increased a mere three-tenths of a bushel per acre setting the average expected yield to be 53.1 bushels per acre. Although it is important to note that both of these numbers were below trade estimates. Since the report came out, prices have rallied, and it appears that speculators were weighing more on the bullish side initially.
Unfortunately, as we are all aware, there are frightening consequences from all of the moisture we received at the beginning of the month across the state. Time will tell how much damage was actually received.
Markets have been reacting accordingly to the recent moisture we received. We hope that as harvest gains full speed, the rally will hold strong. Soybean ending stocks have increased slightly and corn carryout was also increased. These are two wins for the agriculture industry to support the weather we, of course, had no control over.
Other great news and support in the markets happened when Canada joined the U.S. and Mexico NAFTA agreement on October 1. These agreements to work together should help somewhat offset the disruptions that China has been offering the U.S. It sounds like China wants to restart a negotiation with the U.S. come December, so we will see what the future holds when that time comes.