Crop Tour: Corn yields, soy pod counts below year ago in Minnesota

Corn and beans closed lower on Friday amid record crops in the U.S. Midwest, while wheat declined after the International Grains Council cut its outlook for global production.

Wheat futures traded in Chicago dropped to their lowest prices in almost a decade on Friday, pressured by ample supplies.

When it comes to soybeans, production is expected to be about 5.8 million tonnes this year, down 6.5 per cent from 2015.

Minnesota soybean pod counts in a 3-by-3 foot area were pegged at 1,107.60, according to the average of surveys taken from 199 fields.

“I think the beans have a long way to go on the downside”, said Bill Biedermann, manager of Allendale Inc’s Crystal Lake, Illinois brokerage branch.

The U.S. Agriculture Department has projected Minnesota corn yields at 184.0 bushels per acre.

CHICAGO-Grain and soybean futures fell to fresh lows Friday as the USA dollar strengthened and traders braced for another year of bumper US crops. Technical selling added to the drop.

Soybean prices had been pushed higher because of Chinese demand for United States shipments, but the supply picture is very favorable.

The 2016 projected price for Midwest revenue was $3.86 per bushel for corn, while the December CME contract is now trading for about $3.40, or 88 percent of the projected price.

“Canadian farmers expect production of wheat, barley and lentils to increase in 2016, while canola, soybean, corn for grain and oats are anticipated to decline”, the report says.

The USDA reported on Monday that corn export inspections as of August 18th are now 90.2 percent of the USDA forecast versus the five year average of 94.0 percent.

USDA paid $1.67 billion in insurance indemnities previous year on corn, down from $3.8 billion in 2014.

In southern Minnesota, however, corn yield potential seemed weaker than a year ago, as crops were stressed by excessive moisture and hot nights this summer, scouts found. USDA reported weekly export sales of 71,100 tonnes of old-crop corn, below trade expectations, and 1,059,900 tonnes of new-crop corn, above expectations.