All posts by Danny Morris, Ext Area Specialist - Farm Management

Commodity Market Update – 11/30/2018

Corn: December corn futures traded $0.07 for the week. Corn futures were higher due to good export sales as indicated by the USDA. For the year, corn exports are 16% higher to date when compared to the previous year. The trade agreement between the United States, Mexico, and Canada (USMCA) was signed by all three nations’ leaders. However, the agreement will have to ratified by each nation’s legislatures. Also, the G20 trade summit will take place this weekend and the markets reflected a sense of optimism that these meetings will bode well for U.S. agriculture. Market analysts are predicting that the size of the Brazilian corn crop will be 1.1 billion bushels, which is 3.6% higher than the previous year. For producers with corn either in storage or on a deferred pricing contract, the increase in futures for the week is a sign of hope. Continue reading


Commodity Market Update – 11/15/2018

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Corn: December futures closed at $3.67, up only half a cent from the market open. For the week, corn futures have declined approximately two cents from the market’s open on Monday. The USDA’s latest World Agricultural Supply and Demand Estimate (WASDE) showed that ending stocks to continue to be drawn down due to steady demand for corn. Domestic consumption is estimated to be above 2016 and 2017 levels. However, the WASDE report did indicate that global corn production is expected to be higher due to increase production in China. Continue reading


UT Commodity Market Update 7/6/2018

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Corn: September corn futures have rallied this holiday week in part due to the strength gained from the soybean market. However, that says very little given the decline that we have experienced in the corn markets since we put the crop in the ground. The below chart shows just how much corn futures have fallen since spring planting. Continue reading


UT Extension Commodity Market Update

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Corn: September futures were down $0.03 today. For the week, corn has declined $0.13. The decline was primarily caused by the enactment of a 25% tariff on $50 billion worth of Chinese imports. Going forward, weather should dictate market prices as the crop year progresses. Planting progress for continues to march forward with 92% of the crop having been planted as of 5/27/2018 with 72% having already emerged. The current crop rating is 79% good-to-excellent. Locally, new crop basis for corn averaged -$0.08 as of today’s market close.

West Tennessee Grain Bids can be viewed here: West Tennessee Grain Bids 6-1-2018

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UT Extension Commodity Market Update

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Corn: Since the beginning of May, September corn futures have traded in a sideways pattern. The mid-day price of $4.14 for the September contract is only two cents higher than the closing price of $4.12, which occurred on May 1st. The sideways pattern can be attributed to a few things. We have experienced some delays in parts of the Midwest. However, as of May 20, we have already planted 80% of the crop, which is in line with the 5-year average. We have also yet to hit volatile stages of the growing season when weather dictates the market price direction. These factors combined with a not-so upsetting WASDE report this month has resulted in the market not swinging wildly in either direction. New crop corn basis is averaging -$0.09 as of today. Continue reading


UT Commodity Market Update – 5/4/2018

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Corn: Since the beginning of the year, the September futures contract has increased by $0.40. An interesting fact is that of this increase, $0.21 has occurred over the last two weeks. The below chart reflects the recent run-up in corn futures:

 

Looking at the above the chart, obviously, something is driving the market. This begs the question as to what is causing the uptick in prices. Most of the nation’s corn crop is planted in April and by mid-May. Continue reading


UT Commodity Market Update 3/16/2018

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Corn: Since Monday’s market open, May corn futures have declined by $0.05 while September futures have only decreased by $0.02. Corn futures hit a seven month high earlier this week before they began to decline. Corn exports have been excellent due to a lack of competition from South America. Last week’s export sales of 103 million bushels set a marketing year high for the 2017/2018 marketing year. Hopefully, farmers were proactive in marketing their crop and captured some profitable sales while corn futures were at these recent highs. Locally, new crop corn basis averaged -$0.12.

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UT Commodity Market Update 3/8/2018

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Corn: So far this week, corn futures have been on a steady climb. May corn futures have increased $0.08 while September corn futures increased $0.07. The increase can be attributed to the USDA’s latest World Agricultural Supply and Demand Estimate (WASDE) report that was released today. The USDA is projecting higher exports and increased domestic demand due to higher ethanol production. Export figures were increased by 175 million bushels to 2.225 billion bushels. The cause of the increase is due primarily due to U.S. corn being competitive in the export market, strong sales, and lower competition from Argentina. Continue reading