Good morning, everybody. Marketeye's out rambling the countryside visiting some farms today, so the B-Team's in! Good thing the message from this morning's report is pretty clear-cut!
Here's what I've heard so far:
USDA released very bullish corn and soybean production numbers in its monthly Crop Production report Friday morning.Corn production's forecast 4% lower than the September report (at 12.7 billion bushels), while soybeans were adjusted 2% lower from a month ago in Friday's report (at 3.41 billion bushels). Corn yields are pegged at 155.8 bushels per acre, down 6.7 bushels from last month and 8.9 bushels below the 2009 crop. Soybeans are expected to average 44.4 bushels per acre, down slightly from last month's guess and up a bit from a year ago.See more from Friday's report It all boils down to a big-time bullish boost to the trade in both pits, says U.S. Commodities market analyst Don Roose."I'm saying limit-up on corn and soybeans will be right on the heels," Roose says. "What it says is small crops get smaller, particularly on corn."Moving forward, Roose says there's a high probability -- around 85% -- that the soybean crop will continue to shrink through the remainder of this fall's harvest. It adds up to a lot of pressure on the grains for the next few months, both at home and abroad."We've lost our margin for error on beans, and corn will have to buy more acres," Roose adds. "It puts the South American crop in the forefront."