Corn and soybeans were up; wheat was down; and cotton was mixed for the week. Markets were reasonably quite this week trading mostly sideways in tight ranges as we approach the holiday season. March corn appreciated modestly this week trading between $3.64 and $3.72. Seasonally, this is the time of year when corn prices have a post-harvest rally however producers should not anticipate the 79 cent rally, off the low, that last year’s March corn contract achieved. Continue reading at Tennessee Market Highlights.
Corn, soybeans, and wheat were down; cotton was up for the week. On Tuesday, the USDA released a very bearish WASDE report for grains and oilseeds. Corn received the worst of the news (although there was plenty of negative price news to be spread across commodities). Average U.S. corn yield was increased 1.3 bu/acre to 169.3 bu/acre. Continue reading at Tennessee Market Highlights.
November 10, 2015 – USDA World Supply and Demand Estimates
Projected 2015/16 U.S. feed grain supplies are raised this month on higher forecast production for corn and sorghum. Corn production is forecast 99 million bushels higher with the national average yield raised 1.3 bushels per acre to 169.3 bushels, just 1.7 bushels below last year’s record. Projected domestic corn use for 2015/16 is lowered 50 million bushels as a 25-millionbushel increase in expected feed and residual use, with the larger crop and lower expected prices, is more than offset by a 75-million-bushel reduction in corn used to produce ethanol. Continue reading at Monthly Crop & Profitability Outlook .
Corn, cotton, and soybeans were down; wheat was up for the week. In October, December corn futures declined 5 ½ cents from $3.87 ¾ to $3.82 ¼. Increased estimated domestic production and reduced exports were the primary drivers in the futures price decline. Increasing US corn exports will continue to remain challenging as the strength of the USD and high global corn stocks remain a significant hurdle. Continue reading at Tennessee Market Highlights.
Corn, cotton, and wheat were up; soybeans were down for the week. The last 15 trading days, December corn futures traded in a 15 cent band from $3.70 to $3.87. Nationally, corn harvest progressed 16% this past week to an estimated 75% complete (96% complete in Tennessee). Post-harvest we will likely see a mild seasonal appreciation in corn futures prices. A substantial rally remains unlikely due to large global grain stocks and a strong US dollar. Continue reading at Tennessee Market Highlights
Corn was mixed; soybeans, cotton, and wheat were down for the week. Harvest continues to progress in Tennessee. Corn is almost finished and soybeans should be over two thirds done by the end of the weekend. December 2015 corn futures continue to trade between $3.70 and $4.00. Failure to hold the key support level of $3.70 could see further deterioration in futures prices and challenge the contract low of $3.57 ½, established on August 12th. In October, Tennessee cash prices have held up reasonably well with a price range of $3.33 to $4.13 and an average of $3.69 reported at elevators and barge points. Continue reading at Tennessee Market Highlights.
Soybeans and cotton were up; corn and wheat were down for the week. As corn harvest finishes up and soybean harvest enters its peak in Tennessee, producers should look for pricing opportunities for both the 2015 and 2016 crop. Producers should have a marketing plan developed for this year’s remaining crop and next year’s crop. The plan should not be overly complicated and should be revised on regular basis to reflect changes in market conditions and individual farm circumstances. Two important factors to consider are: 1) sale price points (cost of production plus a reasonable return to equipment, land, labor, and management) on a farm-by-farm basis; and 2)marketing tools (cash contracts, futures, options, brokerage services etc.) that the producer is comfortable using. Establishing a basic marketing plan will allow producers to more objectively evaluate the opportunities that markets are offering them. Continue reading at Tennessee Market Highlights.
Dr. Aaron Smith’s comments on the October 9, 2015 USDA World Supply & Dermand Estimates and an update on 2016 Profitability Outlook have been posted at Monthly Crop Outlook.