Corn and soybean traders are turning their attention to Friday’s September supply and demand report from the U.S. Department of Agriculture.
The report will include updated estimates for domestic and global production, consumption, exports and ending stocks. However, the USDA’s latest assessment of this year’s corn and soybean crops is expected to draw the most attention.
Private estimates have increased expectations that the department could lower its corn yield forecast following reports of weaker-than-anticipated yield potential in portions of the Corn Belt.
Soybean production also remains uncertain as traders evaluate how late-season weather affected pod filling and overall yield potential.
In its August report, the USDA reduced its projection for old-crop corn ending stocks by 75 million bushels and lowered soybean stocks by 5 million bushels.
With harvest approaching, even relatively small adjustments to yield or ending-stock estimates could generate a significant market reaction. The report will also be important for producers facing tight profit margins as they decide how aggressively to market their grain heading into harvest.