The Pro Farmer Midwest Crop Tour is in full-swing, and scouts are reporting yield estimates that could be damaging to an already down market.
AUDIO: Brian Grossman, Zaner Ag Hedge
Scouts on the western leg of the Pro Farmer Midwest Crop Tour made their way through Iowa on Wednesday. Zaner Ag Hedge market strategist Brian Grossman says yields are lower than anticipated, but still decent.
“We are seeing some fairly decent fields,” Grossman said. “The corn yield is a little bit disappointing. Our current average is 169.2. I was thinking we were going to be in the 200 category, but we’ve only made four stops. Soybeans – 1,206 average pod count – dragging behind what we were seeing in Nebraska.”
Grossman adds strong yield results could weaken the already down market. However, he says the results could bring support to the market, as they head towards more saturated fields.
“It’s a very closely watched tour,” Grossman said. “It’s the first time we’re getting live scouts out in the field. The impact could be negative, if we keep seeing some larger corn numbers. Like I said earlier, the Iowa numbers were a little disappointing, so maybe we’re going to get some support, especially as we move north into Minnesota where they have quite a bit of flood damage.”
The futures grain market has trended lower this week, as President Trump announced little progress is expected to be made on the trade front with China. Grossman encourages producers to look past the negative news, and remain optimistic.
“For now, I would say, ‘Remain optimistic that we are going to get some kind of trade deal,'” Grossman said. “November elections are coming up fast, and that may give the White House a bit more of an incentive. However, we do have a good looking crop out here. All-in-all, I think the USDA is going to be awfully close, so we really want to be watching for marketing opportunities and locking in when we can.”