Corn: September corn futures closed $0.11 lower for the week. The decline in futures can be attributed to high global stocks and the USDA’s projected yield of 169.5 bushels per acre. If the projected yield is realized, then we will only add to the large supply that we currently have. Over the next few weeks, we will begin to see harvest pressure surface as combines begin to enter the fields. Locally, we have begun to see farmers shell some of their earlier planted corn. Moisture is averaging 18% in Northwest Tennessee with farmers being pleased with yields so far. Some producers are even reporting yields as high as 190 bushels on dry land corn.
This week’s crop progress report continued to rate 62% of the corn crop as being good to excellent. This is considerably lower than last year’s crop ratings, but yields are still being projected at levels that are bearish to corn futures. The average basis for new crop corn equaled -$0.14 as of today’s market close.
Soybeans: November soybean futures traded $0.09 higher for the week. This week, demand is the story for soybeans. The USDA is poised to harvest the largest soybean crop on record and growing conditions have been quite good for most of the Midwest over the past few weeks. Soybeans sales to China continue to remain strong, which helped soybean futures trade higher for the week. Soybean futures could see added volatility as we near closer to harvest. The USDA reported this week that 87% of the crop is setting pods and rated 60% of the crop as being good to excellent. It would appear that the USDA continues to expect that the nation’s soybean crop will be quite substantial for 2017. The average basis for new crop wheat equaled -$0.15 as of today’s market close.
Wheat: July Wheat futures declined by $0.05 this week. This week, the USDA rated 42% of the spring wheat crop as being very poor to poor. However, wheat futures barely shrugged at these figures. This just goes to show how much wheat is out there. Global stocks continue to remain high. This fact alone continues to keep a lid on higher wheat prices. The average basis for new crop wheat equaled -$0.12 as of today’s market close.
Cotton: Cotton futures traded higher earlier in the week, but have since declined. December cotton futures closed at 68.09 today. There is fear that Hurricane Harvey could damage part of the Texas cotton crop. However, it is too soon to tell what impact the storm will have on cotton futures. Cotton equities are currently between $0.12 and $0.13 for West Tennessee producers.
Take Home Message: Harvest is upon us and market prices, and basis, are starting to reflect that fact. Grain storage options should be strongly evaluated in this current market. The University of Tennessee Extension service has a few tools that can aid farmers in that decision-making process.