Futures activity
- Bolstered by concerns about the upcoming crop, Sep-22 corn futures on Friday, Aug. 25, ended the week up by more than $0.35 at $6.6875 per bushel.
- Dec-22 futures closed similarly higher at $6.6475 per bushel.
S&D and fundamental factors
- The Pro Farmer crop tour has informally confirmed that yields are trending lower in much of the Corn Belt, where drought at worst/erratic weather at best has hindered development. South Dakota yields are projected 22 percent lower than last year; Nebraska, Ohio, and Indiana are projected lower by 13 percent, 6 percent, and 8 percent, respectively. Minnesota may buck the trend, with the tour estimating a 7.3 percent yield increase YOY. Meanwhile, Iowa is pegged at 184 bushels per acre, down 4 percent from last year.
Weather, macro indicators, and news
- Purported issues with China’s crop this year have analysts wondering if low production will offset any potential decline in demand there for 2022/23. If so, U.S. export demand may be consistent with 2021/22.
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