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Corn and soybean crop condition ratings slipped a little more at the beginning of September, but both continued to signal record yield potential. Our News page 4 feature this week takes a look at what the hefty supplies could mean for the 2024-25 balance sheets ahead of USDA’s Crop Production and Supply & Demand Reports on Sept. 12. While markets are trying to find demand to chew through the ample supplies, USDA’s ag trade update showed a record monthly deficit for July. The updated farm income forecast isn’t nearly as bleak as USDA’s original projections in February, but the new outlook would still mark the largest two-year drop in net farm income and net cash farm income after they reached record levels in 2022. Given low crops prices, weak ag trade and declining farm income, we take a look at what economists say are several key indicators that can signal a recession in the U.S. agriculture sector. On a positive note, China has ramped up purchases of U.S. soybeans and more purchases could be coming, driven by improving crush margins. We cover all of these items and much more in this week’s newsletter, which you can download here.