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Daily US grain report: futures higher as US crop tour shows lower corn, soybean yield potential

US grain futures prices were higher in overnight trading, on short covering from recent solid selling pressure.

20 August 2019, at 3:52pm

Corn was up around 4 cents, soybeans up about 7 cents and wheat up around 1 to 2 cents.

The key focus of the US grain markets this week will be the annual Pro Farmer Midwest crop tour that kicked off late Monday and ends late Thursday.

With such variable field conditions across the Midwest, this year's tour findings will be scrutinised extra closely. So far, the tour scouts measured lower corn yield potential and the pod counts for soybeans were well under those of a year ago for South Dakota and Ohio, with maturity very much a concern.

Bears have solid overall chart advantage amid price downtrend; no early clues a market bottom close at hand
Bears have solid overall chart advantage amid price downtrend; no early clues a market bottom close at hand

© Jim Wyckoff

The Pro Farmer crop tour released official results from South Dakota and Ohio Monday night. For South Dakota, the tour found an average corn yield of 154.08 bushels (bu.) per acre, which compares to last year's 178.01 bu. per acre and the three-year average of 158.59 bu. per acre. The South Dakota soybean pod count in a 3-foot by 3-foot square came in at 832.85 pods, versus 1,024.72 pods last year and the three-year average of 964.96 pods.

Price downtrend still in place and bears have overall chart advantage
Price downtrend still in place and bears have overall chart advantage

© Jim Wyckoff

For Ohio, the tour found an average corn yield of 154.35 bu. per acre, which compares to last year's 179.57 bu. per acre and the three-year average of

164.38 bu. per acre. The soybean pod count in a 3-foot by 3-foot square for Ohio came in at 764.01 pods versus 1,248.20 pods last year and 1,136.75 pods for the three-year average.

Corn Belt weather forecasts are still calling conditions that are not threatening to the corn and soybean crops.