Morgan Stanley said it remained "bullish" on corn prices, and forecast that soybean prices will "continue to outperform", as it cautioned that even downbeat ProFarmer crop tour results could turn out to be optimistic.
The bank's agricultural commodities team, which were represented on last week's Pro Farmer tour of major US corn and soybean producing states, said that its findings on the trip "only confirm our bullishness on corn and, particularly, soybeans".
The comments reflected in part the "unprecedented yield variability" found on the trip "not only from field to field, but even within individual rows of corn and soybeans", which could raised questions over whether Pro Farmer findings had factored in enough of a downgrade from official expectations.
"Inside of individual fields, corn ear length and girth varied dramatically — a fact the local farmers suggested could increase harvest losses and lower realised yields below our sample-based estimates," focused on ear counts, Morgan Stanley said.
Some brokers have already reported an early-harvest theme of corn yields falling short of numbers farmers had expected, after undertaking ear counts.
However, the bank also flagged the poor condition of northern crops, which escaped much of the early dryness which afflicted Midwest farms...
Source: Argentine Beef Packers S.A.
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