Corn, soybeans, and wheat were down; cotton was up for the week. Another substantial drop in corn, soybean, and wheat futures prices this week as a result of positive weather forecasts and an intensifying tit-for-tat trade war with China. Cash soybean offerings in west Tennessee have dipped below $8. Prices are currently searching for a bottom as we are treading in untested waters from a technical standpoint.
In price risk management you often have to take the good with the bad when it comes to price fluctuations. To highlight this phenomenon one only has to look to the soybean and cotton futures markets from March 2018 to today. On March 1, November 2018 soybean futures closed at $10.38. This Friday (July 13) the November soybean contract closed at $8.34, a decrease of $2.04 (20% decrease). Conversely, on March 1, December 2018 cotton futures closed at 77.18 cents. This Friday (July 13) the December contract closed at 87.84 cents, an increase of 10.66 cents (14% increase). Continue reading at Tennessee Market Highlights.