Corn, soybeans, cotton, and wheat were down for the week. This week we saw a tremendous amount of volatility in the Dow Jones Industrial Average (DJIA) and crude oil. The DJIA reached a 565-day low of 15,666 on Tuesday August 25th and October WTI Crude Oil futures established a new low of 37.75 on Monday August 24th. The DJIA bounced back and erased all of the week’s losses with rallies on Wednesday and Thursday closing close to where the week began. Continue reading at Tennessee Market Highlights.
Soybeans and wheat were down; cotton and corn were up for the week. December corn has bounced back from the August 12th low of $3.57 ½. Corn yields continue to be the subject of great debate as several crop tours have substantially different state yield estimates than the August 12th USDA Crop Production report. It is generally accepted that the Western Corn Belt will have record-to-near record yields while the Eastern Corn Belt will have yields that are below trend. Whether the good yields in the west offset the poorer yields in the east will determine if the USDA’s estimated national average yield of 168.8 bu/acre is high or low. Continue reading at Tennessee Market Highlights.
Corn, soybeans, and wheat were down; cotton was up for the week. In grain and oilseed markets there were two dominant pieces of news this week: 1) the devaluation of the Chinese Yuan and 2) the August 12th WASDE and Crop Production reports. On August 10th the Chinese Yuan was trading at 6.21 to 1 USD. As of writing on August 14th, the Yuan was trading at 6.43 to 1 USD, 3.5% less than the beginning of the week. Simplistically stated the devaluation of the Chinese Yuan makes U.S. exports more ex-pensive for Chinese consumers to purchase and makes Chinese goods imported into the U.S. less expensive, all else being equal. While the full ramifications of this devaluation are yet to be determined for U.S. agricultural exports, it is likely that given the USD’s relative strength and the large global supplies of many grains, oilseeds, and fiber crops that exports and domestic prices will be adversely affected. Continue reading at Tennessee Market Highlights.
Comments by Dr. Aaron Smith
August 12, 2015 – USDA World Supply and Demand Estimates
Corn Projected 2015/16 U.S. feed grain supplies are increased this month with higher forecast corn, sorghum, barley, and oats production. Corn production is forecast at 13.7 billion bushels, up 156 million from the July projection, with the season’s first survey-based corn yield forecast at 168.8 bushels per acre, 2.0 bushels higher than last month’s trend-based projection. Corn supplies for 2015/16 are projected at a record 15.5 billion bushels, up 154 million from last month with a small reduction in beginning stocks. Continue reading at USDA WASDE Comments & Profitability Outlook update.
By definition, the last effective bloom date is the day in which the probability of a new flower developing into a boll and making its way into the basket declines to below 50%. Since it is unlikely (probability less than 50%) that fruiting positions which develop after this date will contribute to yield, end-of-season insecticide termination and defoliation recommendations for our area are based upon protecting/managing those positions which will be flowering Continue reading
Corn, soybeans, cotton, and wheat were down for the week. For the third straight week December corn and November soybean futures declined. After a high of $4.54 on July 14th, December corn futures have retreated more than 70 cents. Similar to corn, soybeans have decreased $1.05 since reaching a high of $10.45 on July 14th. Improved weather conditions have been the primary factor in the price declines. Continue reading at Tennessee Market Highlights.
Corn, soybeans, cotton, and wheat were down for the week. This week, December corn and November soybean futures continued price declines that started after last week’s highs as weather remained favorable in most major production areas. Currently, the markets are approaching key resistance lev-els in December corn and November soybean futures at $4.00 and $9.60, respectively. Failure to hold prices above these thresholds could facilitate an additional futures price decline. Continue reading at Tennessee Market Highlights.
Corn was up; soybeans, cotton, and wheat were down for the week. Year-todate, the 2015 Tennessee soybean and corn crop has experienced many challenges. Wet conditions persisted in many counties during the planting season. As a result, several acres have not been planted, have been flooded, or have experienced production problems (timely chemical application to control weeds, loss of nitrogen etc.). That being said, at this point in the production year, compared to other regions of the country, we are in a better situation than most. Continue reading at Tennessee Market Highlights.