Meanwhile, tight supplies are also becoming a concern for soybean farmers. USDA estimated soybean ending stocks to be 155 million bushels, compared to 175 million bushels in the July report.

“This represents just 18 days of supply, which is very tight, but you have a little more wiggle room with soybeans than corn because the South American soybean crop can help make up the difference,” Davis explained.

“Brazil and Argentina harvest their soybean crop when the United States plants ours, and plants their soybean crop when we harvest ours.”

Davis said the heat stress prompted USDA to lower its average soybean yield to 41.4 bushels per acre, down 2.1 bushels per acre from last year. Soybean production in the August crop report is forecast at 3.05 billion bushels, down about 5 percent from the July forecast.

“The tight supply situation for both corn and soybeans is very supportive for higher prices this year. Farmers clearly have the incentive to harvest every possible acre,” Davis said.