Grain Prices and Markets

Current markets as of 8: am 8/25/14

Corn -5 ¼ @ 3.60 ¼

New Corn -4 ¼ @ 3.67 ¾

 

Beans -6 ¾ @10.35 ¾

 

Commodities are softer this morning outside of Sep beans and soybean oil. Corn is down -3 and soybeans are down -7 after the overnight session.  While the US Dollar index is higher.

 

-New crop beans made new lows overnight, marking the fifth time it has done so in the last 10 trading sessions.

-slower harvest in the south and fewer soybean imports than expected have caused old crop bean basis levels to rocket upwards, this may be an opportune time to make an old crop sale if any beans are left.  Harvest basis is likely to head back into negative territory come October.

-good weekend rain coverage across key portions of the growing region and more to come this week.

-crop conditions will be out later this afternoon

 

Strategy: It may be time to look at adding some premium to a new crop sale or hedge.  For example receiving an extra 20 cents on a sale today in exchange for a new crop offer.  Harvest basis levels also may be a risk concern, especially for beans.

 

Pro-Farmer Tour

Pro-Farmer state by state yield estimates vs last year’s USDA yield are shown in the charts below. As you can see, it appears even better yields are expected with the exception of Nebraska Soybeans.

 

Corn Yield (bpa)	Last Year	PF This Year	% Change
Nebraska	170.0	171.5	+1%
Dakota	138.0	140.0	+1%
Minnesota	160.0	160.0	NC
Illinois	178.0	198.0	+11%
Iowa	165.0	183.0	+11%
Indiana	177.0	193.0	+9%
Ohio	177.0	187.0	+6%
US Total	158.8	169.3	+6.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Soybean Yield (bpa)	Last Year	PF This Year	% Change
Nebraska	53.0	51.0	-4%
Dakota	40.0	40.0	NC
Minnesota	41.0	41.5	+1%
Illinois	49.0	54.0	+10%
Iowa	44.5	49.5	+11%
Indiana	51.0	52.0	+2%
Ohio	49.0	50.0	+2%
US Total	43.3	45.3	+4.6%

 

For more information contact:

 

Greg Mockenhaupt

Risk Management Consultant

Central Valley Ag – ProEdge

1007 County Road O

Oakland, NE 68045

Office: 402-685-5613

Cell: 402-380-9855