USDA Crop Report Looks Bearish for Corn

The USDA report this morning indicates that the corn crop for this year will be better than previously thought, yielding the second largest crop on record. That's great considering the destruction due to last spring's flooding! This suggests possibly a bearish impact when markets reopen this morning. Soybean prices, on the other hand, may be a different matter. The soybean crop appears less than expected, suggesting support for prices. Also, a smaller crop from Brazil may also be supportive. The late season for the plants' maturing may still put them at risk later in the season, if fall frosts damage the delayed grain crops. Typically, the August and September crop reports are the most favorable for crops, and the most bearish of the year for prices. When fall weather sets in, yields typically slog downhill from there.