6/8/2023

Jun 08, 2023


The time has come locally that all the corn processors have plunged to the September futures and take some risk off the table by getting out of the way of the July futures.  In doing so most of them took some of the spread with them, so while +75 the Sept might look good on paper, it was not favorable for the cash price.  The July/Sept spread traded out to 87.25 cents this morning before finishing back near 81 cents on the day.  That spread will stay volatile, so those you of with July basis contracts better be paying attention.  IF people get covered for their July futures needs that spread could implode and do so rather quickly.  I would be pricing your basis contracts sooner than later.  I have said it many times before, but I will preach it again. Invereses never have a good ending, so hanging on to old crop corn is risky and will be painful at some point as old crop and new crop prices come together.  

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Mar 31, 2025
USDA reported corn planting acres at 95.326 million acres of corn, which would be up a little more than 5% from 2024's final number and the second highest March figure of the last ten years behind only 2020's estimate of 96.99 mil acres.  US corn stocks as of March 1st were seen at 81.51 billion bushels, which was exactly what the trade had expected and was down just over 2% from March 1 of 2024.  USDA said farmers intended to plant 83.495 million acres of soybeans, which would be down about 4% from last year and was just a hair smaller than what the trade was looking for.  March 1 soybean stocks were pegged at 1.91 billion bu's, which again was nearly exactly as the trade had expected, and was up 3.5% compared to March 1, 2024.
Mar 11, 2025
The monthly USDA WASDE report was today and it was about as boring as it can get.  The USDA took the month off leaving corn and beans carryouts unchanged.  Corn remains at 1.540 billion bushels and beans at 380 million bushels.  World ending stocks were slightly lowered on both corn and beans.  World corn was pegged at 288.94 million tonnes vs 290.3 million tonnes previously.  World beans were pegged at 121.4 million tonnes vs 124.3 million tonnes previously.  All of the South American crop production estimates were also left unchanged.  
Aug 30, 2024
Corn picks up 10 cents and soybeans improve just over 25 cents on the week to go into the holiday weekend on a positive note.  Soybean export sales have picked up the pace in a big way.  At the end of last week, sales...