- Soybean futures sank 4.7% to $8.46 per bushel in today's trade after the U.S. Department of Agriculture forecast domestic soybean production in 2018-19 would rise to an all-time high of 4.6B bushels, up from 4.4B bushels a year ago and more than analysts expected.
- The record harvest will contribute to a growing U.S. surplus, the USDA says in its latest supply and demand report, with stockpiles in 2018-19 expected to climb to a record 785M bushels, 80% above the same time a year ago, and global soybean stocks also are expected to rise.
- “You’re going to have to have the tariffs situation resolved and our exports bounce back” in order for the soybean market to recover, says Don Roose, president of brokerage U.S. Commodities.
- Corn futures fell 3.1% as the USDA also raised its forecast for U.S. corn production, with record yields expected to push the crop to 14.6B bushels and mean larger than expected supplies, although strong demand should help keep corn supplies in check.
- Wheat futures also fell 3.1% but the USDA expects global heat waves to boost demand for U.S. wheat, raising its projected exports for this year, while raising global supplies.
- ETFs: DBA, CORN, WEAT, SGG, SOYB, JJG, RJA, BALB, COW, CANE, DAG, JJA, GRU, AGA, SGAR, WEET, CTNN, FUD, UAG, USAG, AGF, TAGS, UBC, ADZ, DIRT, LSTK
- Now read: Agricultural Commodities Post The August WASDE
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