Chasing record yields
The Pro Farmer Tour commenced this week. A tour where the participants travel on routes spanning from Ohio to Nebraska making stops along the way doing field checks of corn and soybeans. The spot yield checks weren’t all homeruns but there were enough to back up the idea that the USDA isn’t far off with its current record yield estimates.
If you’ve been paying attention to the weather, you probably weren’t surprised by the results. Illinois and Iowa look to be record outside of northwest Iowa. The eastern part of Nebraska that the tour crosses also is looking great as compared to the three-year average. Indiana and Ohio are good but probably shy of a record state yield. The southern, specifically southwest, part of Minnesota will not be record and is tough in some areas.
The flooding in the area surrounding Sioux Falls from earlier in the year was shown in the field checks taken in and around that area. Otherwise, it’s a great to greatest year ever of successful farming for yield, as has ever been seen in the areas that are checked.
Soybean pod counts were similar in nature with a little more variance and less drag in the early-on wet areas as compared to the corn checks.
Weekly changes in grain price were subdued as prices were higher early in the week but faded lower toward the latter part. Export Flash Sales of 100,000 tonnes or more were reported daily this week for soybeans and corn going to a combination of China, Mexico and unknown destinations, which indicates there is some value/seasonal buying taking place. But it wasn’t enough to shake the reality of good crops and lower prices in the harvest time frame.
Fed comes out of Jackson Hole, doesn’t see inflation shadow, interest rate cuts incoming
The Federal Reserve board members met for their annual get together in Jackson Hole, Wyo. Chairman Powell made it clear that interest rate cuts will be coming when he said, “The time has come for policy to adjust. The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook and the balance of risks.”
Equity markets were up strong on Friday morning with the release of Powell’s comments after having a back-and-forth week.
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