Interesting to see both corn and soybean acres estimated at 90 million each. Did you know, since 1960, U.S. soybean production has increased more than 1,000%, while real soybean prices have fallen by 47%? During that same period, corn production has grown by more than 400% and prices have fallen by more than 60%. Once again proof of technology being extremely deflationary, especially in a commoditized sector of the industry. Get more from the USDA Agricultural Outlook Forum.

Corn

Interestingly exports were reduced from 2.050 down to 1.900. I personally believe U.S. exports could be pushed higher, not lower, which could potentially push ending stocks lower than their current forecast. 

Soybeans

I personally believe planted soybean acres are estimated too low. I continue to hear more folks talking about more soybeans in the peripheral states. 

The markets didn't really move much yesterday and most of the action continues to hinge on South American weather forecasts, which we all know and understand. I'm sure next week will bring more volatility as the forecasts change. As I sit here today, I remain a longer-term bull of both corn and wheat. I am extremely respectful to the front-end of the soybean market and believe we could see another major leg higher. I am, however, a bit more nervous about longer-term price appreciation, hence taking a more aggressive approach to my late-2018 and 2019 soybean marketing efforts.

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