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Market Analysis



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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The gamble of lifting hedges

By Jon Scheve, Superior Feed Ingredients, LLC The USDA confirmed there will be slightly more bean acres planted than corn acres for the first time in over 35 years. There were 1 million more corn acres and a half million more bean acres planted than what was estimated back in …

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Marketing on what is known

By Jon Scheve, Superior Feed Ingredients, LLC Practically everyone in the grain trading world is saying “I didn’t see that coming” after a 70-cent corn price drop over the last 30 days and a $2 per bushel drop in soybeans. I know I’m not the only one disappointed that prices …

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Selling corn before harvest

By Jon Scheve, Superior Feed Ingredients, LLC   The USDA increased the export demand pace for corn. Should the U.S. produce a trend line corn yield of 174 bushels per acre this year, then carryout would drop from the current level of 2.1 billion to just below 1.6 billion by …

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Bullish, bearish or both?

By Jon Scheve, Superior Feed Ingredients, LLC There are several reasons why someone could be bullish or bearish today. Understanding marketplace variables that could affect prices can be helpful when developing a grain marketing strategies. Following are some recent variables that could potentially impact the market.   Reasons to be …

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Thoughts about market analyses

By Jon Scheve, Superior Feed Ingredients, LLC Generally I think grain marketing information directed to farmers is often too broad and general to be helpful. I suspect that’s because those discussing the markets don’t want to commit too far in one direction for fear of being wrong. That is understandable and …

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Hedge account confusion

By Jon Scheve, Superior Feed Ingredients The first look at the ’18/’19 USDA supply and demand estimates are out. Corn yields are predicted to be 174. If this happens, U.S. carryout would be reduced from the current 2.1 billion to 1.6 billion next year, a 20% decrease. World carryout predictions …

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Thinking of the farm as a business

Corn and bean basis has remained strong, or even slightly improved for April delivery, even with the recent futures rally. This likely indicates limited farmer selling and/or good demand. It’s been a while since we’ve seen this type of market situation, and it suggests potentially higher prices going forward. I …

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