October 12, 2023 Daily Grain Commentary
In today’s WASDE Report, some minor adjustments were made that were favorable for corn. The revision below shows that the US corn yield for 2023 has declined from 173.8 to 173 bushels per acre. Although most I states (IL, IA, IN) are in line or slightly increased from the prior month, the crop has not handled the growing challenges if you go east or west. Aside from decreased physical production, imports for corn were cut by 160 million bushels. The combination of lower production and fewer imports offset the decline in exports and usage, leaving a smaller ending stocks for the 2023 marketing year.
Soybean yield also came in lower, pushing below 50 bpa to 49.6 bushels per acre average for the 2023 crop. The yield for 2022 was slightly increased, raising the beginning stocks. Unlike corn, the adjustment in beans was neutral, even with the decline in 2023 production, imports, and increases in crushing. Crush adjustments supported beans as an increase in biofuel and meal and oil exports are anticipated. As expected, softer exports of whole beans are recognized in today’s report.
Pre report, the markets were quiet, trading slightly lower. Within seconds of the report’s release markets, aside from wheat, jumped higher. Corn closed up 7.25 cents, and beans picked up 35.5 cents, only 5 cents lower than the daily high. Wheat finished the day off strong, collecting 16.75 cents on the SRW December contract.
The DeLong Co., Inc.
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