Corn: Over the last 30 days, September corn futures have increased by $0.11. The increase can be attributed to the reduction in corn acres for 2017. The low prices of corn futures caused many farmers to increase their bean acres at the expense of corn acres. As a result, corn futures are showing signs of potentially creeping higher through the growing season. Of course, this all hinges upon the growing conditions of the crop. However, the stage has been set for a chance at higher corn prices.
Corn: Since the March 31st planting intentions report, September corn futures have increased by $0.05. However, there has been quite a bit of movement in the futures market after that report was released. The USDA indicated in that report that there would a reduction in corn acreage compared to last year’s levels. The report stated that we would plant 90 million acres of corn in 2017. While that was expected, it does create the potential for higher corn prices if we have a supply disruption in 2017, such as dry growing conditions in the Corn Belt. Continue reading
Corn: Since the market’s open on Monday morning, September corn futures have declined by approximately $0.11. This decline in prices may cause some producers to make some last minute changes to their planting intentions. With the planting intention report due out on March 31st, we will begin to see the market try to buy more acreage. This decline in prices is somewhat puzzling due to better export sales, acceptable demand from ethanol plants, and the expectation of lower acres in 2017. Continue reading
Corn: Over the past week, corn futures have struggled to gain ground. September corn futures have increased by $0.03 since the markets open on Monday. As the dollar continues to strengthen, corn exports will continue to face headwinds. However, ethanol production continues to remain relatively robust either due to building of stocks or an increase in gas consumption. The USDA will release their planting intentions report on March 31st. This will be the next major milestone for the corn market. New crop corn basis for West TN continues to remain negative with an average of -$0.12.
There is considerable excitement surrounding cotton on the heels of the Farm and Gin Show. From visiting with those in the industry across the Mid-South, I believe TN and nearby states may see larger increases than those initially estimated by the National Cotton Council for the 2017 season. Given the increases in acreage, picker capacity has been a topic of conversation over the past few weeks. Many sold basket equipment several years ago with plans to purchase a module building picker if cotton made its way back on the farm. Now that cotton is coming back, how much cotton can you typically feed through one picker in Tennessee? Mississippi? Missouri? What about capacities in states outside the Mid-South? Continue reading
Corn: Over the past month, corn futures have been trading in a relatively sideways pattern. However, the past few days have allowed cash bids for new crop corn to be near $4.00 levels. Based on the UT Extension Crop Budgets, a producer could potentially lock in a profit at this price level, assuming an average yield of 150 bushels per acre. Private estimates are currently projecting corn acres to be lower in 2017 compared to last year’s levels. Continue reading
The new publication, “W 403: Verticillium Wilt in Tennessee Valley Cotton” provides background on Verticillium wilt, summarizes recent variety trial results, and highlights other practices that can reduce the impact of the disease. Continue reading
In agriculture, we are constantly faced with risk. Farmers are faced with the risk of adverse weather conditions, volatile commodity markets, and many other production risks. As an Extension Farm Management Specialist, I try to communicate to producers the options they have to reduce their overall risk exposure.
I like to narrow down the areas of risk that farmers must manage to two main areas: financial risk and production risk.