Storage CRUNCH Amid Huge Corn and Soybean Crops

Grain Markets and Other Stuff

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Here’s the latest on the corn and soybean harvests, storage challenges, and international market dynamics! 🌽🌱
🚜 Rapid Harvesting and Storage Shortage
Corn and soybean harvests are progressing rapidly, with corn at 65% harvested and soybeans at 81% harvested nationally as of Sunday.
This pace is the second fastest for corn in the last ten years and the fastest for soybeans since 2010.
The quick harvest is leading to storage shortages, as many farmers are still holding last season's grain while waiting for better prices.
Due to limited bin space, some grain handlers are storing corn outside, forcing farmers to sell their crops at near four-year low prices.
USDA projects record national average yields for both crops this year, exacerbating storage issues.
💰 Chinese Economic Stimulus
In an effort to bolster its struggling economy, Chinese banks have cut lending rates:
These rate cuts follow the People's Bank of China's decision to lower rates at the end of September.
The quarter-point reductions are aimed at encouraging borrowing among households and businesses, particularly to support the faltering property market.
If economic growth continues to slow, further rate cuts may be on the horizon.
🌧️ Brazilian Soybean Planting Delays
Brazilian soybean planting is lagging, with only 18% of the expected area planted as of last Thursday, compared to 30% last year.
The slow pace is particularly notable in Mato Grosso, Brazil’s top soybean-producing state.
Recent rainfall is expected to facilitate faster planting in the coming weeks.
As of last Thursday, 48% of Brazil’s first corn crop had been planted, up from 46% last year.
📈 Strong Soybean Shipments
US soybean shipments remained robust last week, with 2.4 million metric tons (89 million bushels) inspected for export during the week ending October 17.
This represents a 28% increase from the previous week but is down 7.4% compared to the same week last year.
Corn shipments also saw significant growth at 1 million metric tons (39 million bushels), which was a 97% increase from the previous week and 112% higher than the same week last year.
However, wheat shipments fell below pre-report expectations at 268,375 metric tons (10 million bushels), down 29% from the previous week but up 58% year-on-year.
📉 Flash Sales and Export Activity
USDA reported several flash sales on Monday:
169,926 metric tons (7 million bushels) of corn sold to Mexico for delivery during the 2024/2025 ma