Jon Scheve discusses why corn prices might continue to go down for the next few months while soybean prices could have upside potential. For example, in eight of the past 16 years, December corn has hit a low for the calendar year after Sept. 1. Half of those lows occurred in September and the other half came in November. On the other hand, U.S. soybean export estimates are forecast to be near trade war levels and the current carryout projections are the tightest in seven years.
According to USDA’s crop progress report, 71% of corn and 85% of soybeans have been harvested so far, which is considerably ahead of the five-year average.
Bart Fischer, co-director of the Agricultural and Food Policy Center at Texas A&M, spotlights the debates over updates to base acres and statutory versus effective reference price.
