When combines first started to roll this harvest yields looked better than expected. Many in the trade expected those yield numbers to decline as the harvest progressed. Jim Bower with Bower Trading says that has not happened, ”It looks like the USDA may have been pretty close when they made their determination on this year’s crop size, pegging it as the 2nd largest in history. The yields coming off the combines continue to be quite good. We do expect these numbers to decline somewhat as we get into the later planted crops.”
Bower told HAT the market is now having to readjust its expectations of what U.S. producers can produce even in a year with less than ideal weather, ”The new hybrids continue to produce amazing yields even better than just a few years ago.” He added one would not expect this kind of yield improvement in just a few years.
Bower added about the only bright spot in the market right now is the continued good demand from the export market.
For more market strategy information, contact Bower Trading at 800-533-8045 or bowertrading.com.
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