Corn: September corn futures increased by $0.10 over the past week. Corn exports have been strong over the past weeks. That along with the news that the RFS looks to remain in place have allowed corn futures to climb higher for the fourth straight week. Brazil and Argentina will begin their corn harvest next month, which could shift demand from U.S. corn to the South America. The size of their crop could impact U.S. corn prices and take the top out of this rally.
Soybeans: November futures increased by $0.21 over the past week. The demand for U.S. soybeans has pushed soybean futures to a 6 month high. However, most analysts are expecting demand to shift to South America. Brazil is currently harvesting and the crop is being reported as a large crop. The size of this crop could pull soybean prices lower in the short term.
Wheat: July wheat futures gained $0.05 over the past week. There is no major update on wheat this week.
Cotton: December cotton futures closed at 0.7119. Cotton equities continue to range between $0.10 and $0.13 for 2016 equities and $0.15 to $0.155 for 2017 equities.
Take Home Message: With the recent rally in soybeans and corn, producers may look at the potential of booking soybeans above the $10.00 level for the 2017 crop year and near the $4.00 level on corn. Producers should look at their costs of production to determine profitability levels and work with suppliers for input prices for 2017. A few local grain buyers are offering prices very close to $4.00 for new crop corn. This may be a selling point for a few producers that intend to plant corn in 2017.