Highlights
We continue to hear of yields that are terrible and yields that are the best ever from across the Corn Belt. We really do not have any confidence in saying the USDA should raise or lower national average yields on next Friday’s S&D. We do sense bean yields are more likely to see a yield reduction or a smaller increase than corn.
Rain in the forecast for Brazil and no rain in the forecast for Corn Belt pressured corn and beans yesterday. Wheat prices were thumped yesterday, at least in part, because Egypt announced plans to cut wheat imports and reduce spending on subsidized bread by adding corn or sorghum. Andrey Sizov commented, “Bearish? Not really if you remember how long they have been trying to reduce imports. Mostly no news here.”
Along that same line, every country wants to become more food self-sufficient. China has been trying to do that for 40 years and they buy more food products every year because Chinese people are moving from poverty into the economic middle class and they are no longer satisfied to eat only beans and rice.