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Market Analysis



Marketing plans for the big crop looming

By Jon Scheve, Superior Feed Ingredients, LLC The upcoming corn and soybean harvest is expected to generate the largest crop ever. Combine that with one of the largest carryouts ever and it’s panicking both farmers and end-users without enough storage. As a result, basis levels are at mid-harvest levels before …

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Reviewing September trades

By Jon Scheve, Superior Feed Ingredients, LLC Wheat values dropped 40 cents last week, the biggest weekly decrease in 2 years. Wheat had been pulling up corn prices some, so this probably contributed some to corn prices being down another 20 cents this week. While this is disappointing, both of …

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What should be stored at harvest?

By Jon Scheve, Superior Feed Ingredients, LLC There was some positive trade news last week. Mexico and the U.S. may be able to avert trade issues — which is positive for corn — and Chinese officials are coming to Washington to resume talks, which could help soybeans. Bean futures are …

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Buying puts

By Jon Scheve, Superior Feed Ingredients, LLC Arguably the Aug. 10 USDA report is the biggest of the year because it provides the first estimated yields for the upcoming harvest. With population estimated counts the highest ever, and ear weight estimates lower than the past two years but still on …

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Taking a look at past and present trades

By Jon Scheve, Superior Feed Ingredients, LLC I suspect everyone is waiting for the Aug. 10 USDA report that includes estimated ear weights and yields. I think if the average national yield is 175, $4 Dec corn is likely. Then every bushel above that value decreases Dec futures by 10 …

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Consider storage expenses in marketing

By Jon Scheve, Superior Feed Ingredients, LLC I’ve noticed far fewer bad corn crop pictures and farmer complaints this year versus previous years. Most farmers are generally happy with crop conditions. Usually by mid-July at least some farmers are complaining about drought conditions and wondering why corn isn’t at $5. …

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Speculating and hedging

By Jon Scheve, Superior Feed Ingredients, LLC Right now many analysts and advisors are suggesting corn and beans are too cheap and prices should rally. This makes sense because U.S. corn prices are the cheapest in the world, which means exports should increase. Elevator managers that I have spoken with indicate …

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So what are you going to do now?

By Jon Scheve, Superior Feed Ingredients, LLC The most recent USDA report showed some potential for the corn market with strong demand expected to continue. This could mean current corn prices are near a bottom. However, the great weather throughout June and early July suggests the national yield could be another …

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Marketing in a trade war

By Jon Scheve, Superior Feed Ingredients, LLC Its official, the U.S. is now in a trade war. Last week some said a last minute negotiation could stop it, but that didn’t happen. It’s uncertain if this will last a few days, weeks, months or years. No one really knows the outcome …

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