Harvest is coming to a close. Across our whole CVA territory, we have experienced exceptional yields in all commodities. The bountiful harvest called for creativity in creating additional space to take on all the extra bushels. We tried to do our best to serve you, our patrons and help keep your combines moving. At times, I’m sure it was challenging and there were lines to deal with, but it’s to be expected with the above average yields.
This past week, the USDA released their latest supply & demand estimates. It was of no surprise that the USDA increased the estimated yield. However, the market was slightly surprised by how much the USDA increased yield. The USDA improved the national corn yield by 1.3 bushels per acre to 169.3 bushels per acre. Bean yield also increased dramatically. Average estimates had the national bean yield only increasing by .3 bushels per acre, but we saw the USDA increase it by 1.1 bushels per acre to 48.3. In terms of the U.S. balance sheet, the increased production isn’t necessarily good news. In the same instance that yields increased, corn demand was slashed, and bean demand couldn’t keep pace with the increased production.
The added bushels to this year’s crop provides both good news and bad news. Obviously, the good news is that you have more bushels to market. However, the bad news is that it looks like you’ll be marketing at prices lower than you are accustomed to. The increased available supply in both corn and beans along with curtailing demand will make for a challenging marketing environment. Our ProEdge team offers a diverse package of tools and is available to assist you in marketing your grain.
We at CVA would like to thank you for your business this harvest and look forward to working with you the rest of the year and many years to come!