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Market swings possible with early #harvest18

The president of U.S. Commodities says an early harvest presents the market with upside potential and downside risk.

Don Roose tells Brownfield the 2018 crop is the second-fastest maturing crop on record.

“Only 2012 was faster, and that was a drought year.  So that brings up the concern that maybe the yields are not going to be there.”

Nearly 90 percent of U.S. corn has reached the dough stage and more than 90 percent of soybeans are setting pods, both well ahead of average.

Roose points out crop condition ratings remain above normal.

“So as the harvest begins and picks up into some of the bigger Corn Belt areas, we’re going to watch to see if the yield verifies.  If the yield is there and grows, we typically get a seasonal break into late October (to) early November.”

If soybean yields come in below 50 bushels per-acre and national corn yields average under 177, Roose says the market should respond favorably.