Market Analysis

Preblecorn

Little excitement in today’s USDA numbers

Conclusion, boring report. Santa, back to work. Today’s report was vanilla and boring. No big changes that sparked huge price movement in either direction. Shortly before the report corn was up 3 cents, soybeans up 1 cent, with wheat up 8 cents. At 12:15 corn was unchanged, soybeans were down 3 cents, and wheat was [...]

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Beans 2012

Will $4 corn be a reality?

Now that harvest is completed, the winter landscape begins to exert its influence. Work turns to what can be accomplished inside. Producers’ attentions are quickly turning to the 2016 growing season. Corn and soybean prices have fallen drastically compared to those seen several years ago. Many decisions will need to be made in coming months. [...]

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grain bin corn

How to avoid giving away your storage

The recent market collapse was largely caused by higher than expected corn and soybean yields and carryouts. In the end, increased production in the western Corn Belt made up for lower yields in the east due to the wet spring. Also, world carryout increased because the USDA is estimating that China hasn’t used as much [...]

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Smokey bear

USDA gives bears plenty to talk about

Today’s report was bearish for corn, soybeans, and wheat. All three had an ending stocks increase that were greater than expected. Corn production was estimated at 13.654 billion bushels, up 99 million bushels from last month. The yield was set at 169.3 bushels per acre, up from last month at 168. Corn exports were lowered [...]

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harvest10

Solid basis continues through harvest

Weather was nearly perfect for harvest the entire fall season for much of Ohio. Some parts of Ohio — particularly in the northwest — had six weeks without rain, a far contrast to the spring when it rained week after week. It was a bittersweet reminder of how fickle the weather in Ohio and the [...]

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corn4

Option strategies can offer marketing flexibility

Farmers not selling is keeping prices within tight trading ranges. Now that harvest is over, it’s uncertain how long farmers will hold their grain.  Also, corn from Brazil is being shipped to poultry end users in southeast U.S., which is decreasing demand for U.S. corn. Some people are trying to tie high basis levels to [...]

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corn harvest

Buying calls is gambling

  Markets remained range-bound last week. There was some discussion the Chinese, who control much of the world’s corn carry out, may grind some for ethanol. Generally China has avoided the food versus fuel debate, but some of their corn is from 2010 and is declining in quality. If China would increase ethanol production, it could [...]

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corn ear

Are corn yields on their way up?

The October USDA supply and demand report often has the potential to be a game changer. Game changers can also be called surprises, which in turn create violent price moves. With that report USDA has the ability to gather actual harvest data to give a much more representative report for U.S. yields. Previous reports were [...]

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autumn corn harvest

Get to know your marketing tools

We finished harvesting on our farm in southeast Nebraska last Wednesday. Yields were average for irrigated corn and soybeans, which was expected. However, we were pleased that dryland corn matched last year’s record production and dryland soybeans were 20% higher than the last 10-year average. Reports indicate these results (i.e. corn meeting expectations and bean [...]

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fall harvest

Soybeans slightly friendly, corn and wheat neutral

Overall the report was not a huge shocker. No big price movement took place at noon.  USDA estimated corn production at 13.555 billion bushels, last month it was 13.585 billion bushels. The corn yield came in at 168 bushels, compared to 167.5 last month. That is a bit bearish. Traders were expecting the corn yield [...]

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