08/28/2023 Corn and Soybeans Firm on Falling Crop Estimates

UPDATE ON SOYBEAN RECCO DAY 1: As of 6/16/23 prior advice had you 25% hedged on ’23 production and short $14 November call options for about 25 cents as a price enhancement strategy. Given the PF Tour evidence that crop yield potential has already fallen since USDA’s August crop report and likelihood weekly crop condition ratings will decline further with a hot, dry finish to the season, buy back those calls to limit loss. On the Grains: Corn and soybeans are firm in overnight trade as we go to press, but wheat is lower. Corn and beans are supported by PF Tour results and their U.S. crop estimates released after the close on Friday. They put the corn yield at 172 bpa, down from USDA’s 175.1 August estimate. They raised harvested acreage by 675,000 acres based on FSA data earlier this month, but it still put their corn crop estimate 14.96 billion bu., down 140 million bu. from USDA. They put the U.S. soybean yield at 49.7 bpa, down from USDA’s 50.9 in August. They left acreage unchanged so it put their crop estimate at 4.110 billion down 95 million bu. from USDA. Corn ending stocks had a big cushion, but…