There is a plethora of negative news out today making it difficult to point fingers at which is to blame for the collapse of both corn and soybeans. First we started the morning session with harvest pressure built up over the weekend as good weather allowed for the continued quick pace of harvest. Across the Midwest yield reports are coming in better than expected for both corn and beans causing some long liquidation and profit taking.

Corn

Adding to the already bearish tone the FSA (Farm Service Agency) updated their monthly acreage report increasing corn acres 834,000 acres from the their August Report. As of midday funds had sold off 13,000 contracts of corn.

Soybeans

Soybeans locked limit down posting their largest percentage drop in a year and a half due to long liquidation, better than expected yields, and rainfall in Brazil allowing soybean planting to start. The FSA monthly report also increased soybean acreage 808,000 acres from the August report. At midday funds had sold approx. 15,000 contracts.

Harvest Progress

The USDA released their harvest progress estimates and as expected corn harvest is said to be 26% completed vs. last week’s 15%. Iowa corn crop is 22% complete up 12% from last week. The soybean crop is said to be 10% this week vs. 4% last week. Iowa soybeans are 6% completed up 5.5% from the previous week. Both corn and beans are well beyond the average harvest pace and continue to head for the record books.

Outside Markets

Perhaps the two largest stories occurred in outside markets today. Chinese markets were sharply down on news their GDP projections would be lowered yet again. On top of this there were rumors the SPR (Strategic Petroleum Reserves) will be releasing excess reserves into the supply chain and the white house responded with a statement claiming this to be false, however crude oil still took a dive to finish down over $2.00 a barrel.

Opening Calls

Corn Steady

Soybeans Down 10

http://www.fccoop.com/markets/information.cfm