Recent Updates

Tennessee Monthly Crop Outlook

Author: Chuck Danehower, Extension Area Specialist - Farm Management No Comments

The Tennessee Monthly Crop Outlook – MonthlyCropOutlook121217 – is a summary of the USDA’s monthly World Agricultural Supply and Demand Estimates (WASDE) report. Domestic balance sheets for corn, soybeans, cotton, and wheat are displayed along with price reaction in futures markets for each commodity on the day of the report release. Additionally, supply and demand estimates for key importing and exporting countries are provided for the current month along with change in estimates from the previous report. The Profitability Outlook section contains estimated returns per acre for each commodity based  on 2017 Tennessee state average/trend yields and current price offerings (note: cotton prices include a seed and hauling rebate). Variable expenses are based on the University of Tennessee Extension 2017 Row Crop Budgets. Prices are updated monthly; expenses are updated as warranted during the year and may be different than the expenses contained in the 2017 Row Crop Budgets. This section provides an estimation of the current relative profitability amongst major row crops in Tennessee. The report is prepared monthly by Dr. Aaron Smith and Chuck Danehower.

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Tennessee Market Highlights

Author: Chuck Danehower, Extension Area Specialist - Farm Management No Comments

Corn, soybeans, and wheat were down; and cotton was up for the week. March corn futures continue to struggle to gain positive traction. The contract low, $3.48 ¾, occurred on November 16, since then the contract has not traded above $3.60 ½, an 11 ¾ cent trading range. January soybean futures set 4-month highs earlier this week before retreating below $10 on Friday. Next week’s USDA WASDE report will determine if prices breakout to the upside or establish a new contract lows for corn. U.S. exports and adjustments to the South American crop will be closely watched for soybeans. Major revisions to the domestic crop on the WASDE report are not expected. Continue reading at Tennesseee Market Highlights.

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Tennessee Market Highlights

Author: Chuck Danehower, Extension Area Specialist - Farm Management No Comments

Corn, soybeans, and cotton were up; and wheat was mixed for the week.
November was not a good month for grain futures. December corn closed
the month at $3.41 ¾, down 4 cents for the month and December wheat
closed at $4.09 ¼, down 9 ½ cents for the month. January soybeans traded
flat for the month closing at $9.85 ¾, up 1 cent from the start of the month.
Cotton futures had a terrific November. The December contract closed the month at 75.04 cents, up 6.33 cents for the month. While many factors have influenced futures prices this past month, export sales commitments shed some light on futures market
price direction in November. Year-to-date cotton export sales commitments are 9.646 million bales (2.19 million in exports-to-date and 7.456 million in outstanding sales), 41% higher than a year ago and 72% of the USDA’s marketing year total. By comparison
total export sales commitments for: soybeans are 1.264 billion bushels, down 18% from last year and 56% of the USDA’s marketing year total; corn are 867 million bushels, down 27% from last year and 45% of the USDA’s marketing year total; and wheat are 634
million bushels, down 9% from last year and 63% of the USDA’s marketing year total. Strong export demand for cotton was a major driver of improved cotton futures prices. Continue reading at Tennessee Market Highlights.

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Crop Progress – Tennessee and U.S.

Author: Chuck Danehower, Extension Area Specialist - Farm Management Comments Off on Crop Progress – Tennessee and U.S.

EXCELLENT WEATHER FOR HARVEST, PLANTING

Weather conditions last week were ideal for row crop harvest and small grain planting. Producers took full advantage of the weather to finish corn harvest. Both soybean and cotton harvest are nearly complete and wheat planting is almost finished. Row crop producers report favorable yields. Cattle producers are starting to feed hay as pastures get short. There were 6.2 days suitable for field work, up from 4.5 the previous week.
Topsoil moisture was 1 percent very short, 8 percent short, 87 percent adequate, and 4 percent surplus. Subsoil moisture was 1 percent very short, 7 percent short, 87 percent adequate and 5 percent surplus. Continue reading at TN_11_27_17. The U.S. Crop Progress report can be read at CropProg-11-27-2017. This is the last Crop Progress report until April, 2018.

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Tennessee Market Highlights

Author: Chuck Danehower, Extension Area Specialist - Farm Management Comments Off on Tennessee Market Highlights

Soybeans and cotton were up; corn was mixed; and wheat was down for the
week.

After setting a new contract low ($3.48 ¾) the previous week, March corn
futures returned to the familiar trading range of $3.50 to $3.70. As the New
Year approaches a mild seasonal price appreciation should be expected; however
at this point it is unlikely (baring a weather event in South America or a trade disruption) that prices will exit its current trading range. Continue reading at Tennessee Market Highlights.

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Crop Progress – Tennessee and U.S.

Author: Chuck Danehower, Extension Area Specialist - Farm Management Comments Off on Crop Progress – Tennessee and U.S.

DRIER CONDITIONS ALLOW HARVEST TO RESUME

Drier conditions returned to Tennessee, allowing farmers to complete corn harvest, and to make progress harvesting cotton and soybeans as well. Tobacco producers continued to be busy stripping tobacco. Cattle producers in areas that received less rainfall than usual started to put out hay for their herds. There were 4.5 days suitable for field work, up from 3.1 the previous week. Topsoil moisture was 1 percent very short, 5 percent short, 78 percent adequate, and 16 percent surplus. Subsoil moisture was 2 percent very short, 9 percent short, 82 percent adequate and 7 percent surplus. Continue reading at TN_11_20_17. The U.S. Crop Progress report can be read at  CropProg-11-20-2017.

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Tennessee Market Highlights

Author: Chuck Danehower, Extension Area Specialist - Farm Management Comments Off on Tennessee Market Highlights

Soybeans and cotton were up; corn was mixed; and wheat was down for the
week.

Fridays rally helped pull commodity prices up after early week price declines
on follow through from the November 9th WASDE and Crop Production reports.
On Friday, corn contracts closed up 5 ½ -6 cents, soybeans up 15 ½ – 18
½ cents, cotton up 0.17-0.57 cents, and wheat up 4-5 ¾ cents.
As harvest winds down it is important for producers to re-evaluate their marketing plan. Consideration may need to be given to the following: 1) Storage – How much of the crop stored is priced versus unpriced? What are my alternatives for the unpriced crop held
in storage?; 2) Re-ownership (establishing a position in the futures market without holding the physical commodity – after the cash sale occurred) – If the cash crop was sold, are strategies using futures and options to take a position or potential position, in order
to participate in a potential post-harvest rally, worthwhile; 3) Price enhancement – Are there option strategies that can allow me to increase my average selling price for the crop by collecting premiums? Continue reading at Tennessee Market Highlights.

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