Even though we are in the midst of the growing season in the United States, we are already starting to see attention on the upcoming harvest season.
The most attention is on what we will see for crop size, but there are other factors being monitored as well.
One of the main ones is when harvest will get under way. This year’s planting season was early, and progress was rapid, which could easily lead to an early harvest this fall.
One benefit from this is crops could easily miss late-season weather issues that have been shown to reduce crop size.
An early harvest will also help bridge the gap between crop years, easing concerns over depleting old crop reserves, mainly on soybeans.
Basis values are staring to be impacted by the potential for an early harvest this year as well. Buyers are now weighing the possibility of these early sourced bushels and adjusting their bids accordingly. Commodity buyers are also showing less willingness to push bids for late summer coverage, especially for export.
A late start to the South American ...