USDA crop estimates out August 10

The USDA will release it’s first survey results for corn and soybeans on Friday. Before this, only the best estimates were being tossed about. For Friday’s number, the USDA is actually using results from farmers around the country. Currently, the expected yield for corn is approx 146 bushels/acre. Informa Economics last week said they expect that number to drop into the 131 area. If that is the case, and say the number drops into the 120′s, expect some more fireworks. As we spoke last week, the pull between ethanol producers and EPA mandates one one side is going against the American and global public on the other who will not be amused to see their food costs soaring just so we can save the planet. Just in time for a crucial Presidential election- do you think anyone in Washington is paying attention to these numbers? I am going to guess they are. Of course, much higher corn prices effect the entire food chain- cattle/dairy/hogs/chicken all the way down to you and me. Commodities in general look for Mr. Toad’s Wild Ride to continue.