The morning started off with a choppy 2-sided trade in both corn and beans which quickly took a sharp dive lower around the noon session. December corn closed down 16c while November beans closed down nearly 18c. A combination of hedge pressure and fund liquidation heading into the Wednesday USDA report can be the blame of the quick sell off.

Midwest rains haven’t slowed harvest down much as the US corn crop is seen continuing at record the record pace. US corn is 15% harvested vs. last week’s 10%. Iowa corn is said to be 10% harvested vs. last week’s 5%. US soybeans came in at 4% harvested with Iowa soybeans still below 1% harvested.

Long term Midwest weather outlooks continue to look quiet allowing harvest to continue its record pace. Nothing to speak of in the 1-5 day outlook until a cold front moves in Thurs. bringing isolated showers across much of Iowa. Long term forecast is below normal temps and below normal precipitation.

Average trade guesses for Wednesdays USDA report.

US Corn Production:       10.380 (range 9.860 - 10.780)

US Corn Yield:                    120.6 (range 117.6 - 124)              

US Soy Production:         2.657 (range 2.510 – 2.739)

US Soy Yield:                      35.8 (range 34.5 – 36.7)

2011-12 US Corn Carryout:           1.044 vs. Aug 1.021

2011-12 US Soy Carryout:             134 vs. Aug 145

2012-13 US Corn Carryout:           592 vs. Aug 650

2012-13 US Soy Carryout:             109 vs. Aug 115