Corn and soybean values are trading higher this morning.
Vegetative imagery maps released recently showed large yield potential of Argentina’s crops. Experts are drawing comparisons between this year and 2007. That year, corn production was 17% above trend and soybeans exceeded trend by 12%. If realized this year, both would exceed last year’s crop by over 30%.
The same imagery maps show that Brazil’s outcome seems less clear. In comparable years Brazil’s corn has seen anywhere from 9% below trend, to 14% above trend. Soybeans on comparison have tallied anywhere from 10% below to 17% above trend yields. Sources say that the most comparable years are 2012 and 2014, where corn ranged 8-10% above trend and soybeans fell 6-10% below.
Since 2010, domestic corn demand has grown by an average of nearly 250 million bushels each year. This past year’s growth is estimated at 66 million bushels, whereas the prior year saw an estimated growth of 150 million bushels. This growth is needed as trend yields continue to climb as technology and farming practices keep improving.
Market Movers; Ethanol Manufacturing data and trade negotiations.