Today has been quiet with markets drifting lower throughout the session and currently trading close to the lows. London and Paris have also been lacklustre in sympathy.

Once again there has been little in the way of significant news to change the overall market and it is probably this lack of fresh news to “feed the bull” which has led to some profit taking and easing in prices.

In the US Allendale have come out with their projections ahead of next Wednesday’s USDA figures and have placed an estimate of 34.9 bu/acre on soybeans which compares with the USDA figure of 36.1 bu/acre. Overall output according to Allendale would be 2.602 billion bu versus the USDA at 2.692 billion. Other figures from Cordonnier and Lanworth are 34.5 bu/acre and 35.0 bu/acre respectively. Lanworth are renowned for their use of satellite technology in crop forecasting although it remains to be seen as to how accurate they can be. The remnants of hurricane Isaac have provided rainfall over the lower Mississippi and eastern Midwest although it is believed to be too late to assist with pod filling.

Corn estimates from Allendale are at 118.2 bu/acre, well below the USDA’s 123.4 bu/acre giving an output of 10.326 billion bu, below the USDA’s 10.779 billion bu. Cordonnier and Lanworth figures are 119 bu/acre and 116.64 respectively.

In Russia the harvest continues and current estimates of the wheat yield are at 1.95 mt/ha compared to 2.87 mt/ha last year. If we believed this to be poor, spare a thought for Kazakhstan where grain yields are running art 0.75 mt/ha nearly half last years figure of 1.4 mt/ha.

Given the above we view today’s dip in prices as an opportunity to look at taking cover to fill any gaps which may exist. The dip may last for a day or so, but with our expectation on the next USDA crop report it may well be short lived.