Welcome to the new The D&D AG MarketMIX newsletter! This newsletter is exclusively for you - our D&D customers and associates. Our goal is to provide you with a monthly summary of the Ag market reports to keep you updated on relevant, vital news that may impact your business.

USDA estimates US corn and soybean yields down

USDA’s latest World Agricultural Supply and Demand Estimates report offered some surprises on the soybean balance sheet. After last month’s unexpected upturn, USDA adjusted 2022-23 yields to 50.5 bushels per acre, down from 51.9 in August and below expectations. Corn yields declined, too, but fell more or less in line with forecasts at 172.5 bushels per acre.


Though US soybean production estimates decreased, global bean and meal balance sheets remain relatively healthy. World ending stocks came in at 98.92 million metric tons, within estimates. And supplies could get another boost from South America, where growers are expected to plant record acreage this year.


Demand, meanwhile, is on shaky ground. Historically, China buys large amounts of US soybeans ahead of harvest. This year, however, buyers are quiet. USDA also trimmed overall soybean demand estimates by 113 million bushels. If activity doesn’t pick up in the next month, demand could drop further. Consequently, analysts say markets will have to rely on crop failure in South America for any major upside.

The US corn crop remains in decent condition, with silage reports out of Indiana, Ohio and Michigan coming in better than expected. Basis remains fairly stagnant, though lower-than-average export demand and depressed ethanol usage could weigh on figures heading into harvest.

Protect Your Downside

Given current market conditions, the Ever.Ag Feed Foundations Team recommends putting strategies in place to protect your downside. If you’re locking in high prices, consider buying inexpensive puts underneath. Please contact Jordan Miller or Pat Kahle who can direct your questions to the appropriate advisor to discuss specific strategies.

Jordan Miller: 419-692-3206 ext. 1043

Pat Kahle: 517-260-8295 or P[email protected]

This monthly report is brought to you by Ever.Ag’s Feed Foundations Team. The risk of loss trading commodity futures and options can be substantial. Investors should carefully consider the inherent risks in light of their financial condition. The information contained herein has been obtained from sources to be reliable, however, no independent verification has been made. By law we must state the information contained herein is strictly the opinion of its author and not necessarily of Ever.Ag and is intended to be a solicitation. Past performance is not indicative of future results.

We appreciate and thank our sponsor partners in this report – CHR HANSEN & VETAGRO.

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