Flash Sale Alert
Private exporters reported sales of 167,000 metric tons of soybeans for delivery to China during the 2022/2023 marketing year.
(More) Lower Yield Estimates
Commodity Consultant, Dr. Michael Cordonnier released his yield estimate for the U.S. corn crop. He dropped his estimate 3 bushels per acre, to 170 bpa. As mentioned, several times over the last week+, we feel the market has digested the lower yields and believe the market is likely trading closer to a 170-172 yield, below the most recent USDA estimate of 175.4.
U.S. military vessels and aircraft have returned to the Taiwan Strait as tensions escalate. It's being reported that Taiwan fired shots at a done belonging to mainland China. We don't believe that this conflict will go away anytime soon. If the tensions rise to the point of U.S. intervention, it would likely be extremely bearish for grain futures.
Outside markets were sharply lower yesterday with indices down to their lowest level since the end of July. Crude oil futures were sharply lower yesterday, erasing all the gains and then some from the previous session. That weakness has spilled into today's session, with October futures currently trading down another 3% and below the psychologically significant $90 handle.