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Market Analysis



The difference between buying and selling calls

By Jon Scheve, Superior Feed Ingredients, LLC The USDA lowered corn yield estimates about 2 bushels per acre and decreased demand a little as well. Despite these adjustments, the report still showed a drop in next year’s carryout and the tightest stocks-to-use ratio in 4 years. This could help keep corn …

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Buying calls is gambling

By Jon Scheve, Superior Feed Ingredients, LLC The President started tweeting about trying to work with China to end the trade war and the market rallied 30 cents. The next morning a White House advisor said there wasn’t much progress, but the market still closed the day positively. After the …

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Collecting soybean carry

By Jon Scheve, Superior Feed Ingredients, LLC Corn and beans rallied last week because rain swept through the Midwest slowing harvest. In select areas where harvest is behind, processors are bidding up for grain. It’s unlikely these basis bumps will last long, but some lucky farmers who managed to harvest …

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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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