Corn and cotton were up; soybeans were mixed; and wheat was down for the week. Since May 3rd the USD index has appreciated 3.8%. A stronger USD is detrimental to US agricultural exports because it makes our products more expensive to foreign buyers (simply put, it takes more of the foreign currency to buy a USD). The USD index is still down 3.5% from the beginning of the year (98.76 to 95.343). The value of the USD will be an important factor if corn, soybean, wheat, and cotton exports are to meet the USDA’s recent projections for the upcoming marketing year. Continue reading at Tennessee Market Highlights.
Corn: The corn market has continued its rally over the early part of this week. However, the rally was cut a bit short due to a stronger U.S. dollar. This creates a bit of headwinds for corn futures. As we get further into the planting season, the size of the crop will start to be revealed in analyst reports. Continue reading
Corn: It has been a wild ride in the commodity markets this week. Corn, like the other grains, has had its fair share in the roller coaster ride this week. In fact, September corn futures opened Monday at $3.80 and closed today at $3.92. The gain of $0.12 can be attributed mostly to the fear of what will happen to U.S. corn acres along with a spillover effect from the soybean trade. The Midwest has received rainfall in key growing areas that is delaying the planting of corn. Continue reading
May 10th Supply and Demand Estimates and Profitability Outlook
This link to Supply & Demand Estimates & Profitability Outlook contains a summary of the USDA’s monthly World Agricultural Supply and Demand Estimates (WASDE) report. Domestic balance sheets for corn, soybeans, cotton, and wheat are displayed along with price reaction in futures markets for each commodity on the day of the report release. Additionally, supply and demand estimates for key importing and exporting countries are provided for the current month along with change in estimates from the previous report. The Profitability Outlook section contains estimated returns per acre for each commodity based on 2015 Tennessee state average/trend yields and current price offerings (note: cotton prices include a seed and hauling rebate). Variable expenses are based on the University of Tennessee Extension 2016 Row Crop Budgets. Prices are updated monthly; expenses are updated as warranted during the year and may be different than the expenses contained in the 2016 Row Crop Budgets. This section provides an estimation of the current relative profitability amongst major row crops in Tennessee.
Corn: Both corn exports and new crop sales were lower this week. The lower sales contributed to the bearish tone in the corn markets. Speculative trading has been part of the driving force behind the lower corn prices this week. Continue reading
Corn, cotton, and wheat were down; soybeans were up for the week. Corn and wheat futures decreased 10-25 cents while soybean futures increased 5- 15 cents this week. This week, the soybean futures market continued its recent volatility. November soybean futures had daily trading ranges of 21, 27, 19, 28, and 27 cents. Next week we will likely see continued volatility in soybeans as on Tuesday the USDA will release the May WASDE report. The report has the potential to provide fuel for continuing the uptrend or a reversal in soybean markets. Continue reading at Tennessee Market Highlights.
Corn, cotton, soybeans, and wheat were up for the week. Corn net sales for export were almost double pre-report estimates at 85.1 million bushels for the week of April15-20. Immediately following the export sales report on Thursday, July corn futures increased 5 cents. Currently, total export commit-ments (outstanding sales + exports) total 1.459 billion bushels (540 million bushels of outstanding sales plus 919 million bushels of accumulated exports), 191 million bushels short of the USDA’s 2015/16 marketing year projection of 1.65 billion bushels, with 19 weeks remaining in the marketing year. To achieve the USDA projection, net sales would need to average just over 10 million bushels per week. Continue reading at Tennessee Market Highlights.
Corn: Corn has been trading sideways this week. However, corn prices are still above the recent lows that we saw take place at the end of March. Better corn sales has contributed to the increase in corn prices. According to the today’s USDA export report, net sales of 2.2 million metric tons established a marketing year high for 2015/2016. This is an increase of 80% over the previous week. Actual exports were a tad lower than last week’s levels.
Planting is advancing rapidly across the U.S. According to the April 25, 2016 Crop Progress 30% of the U.S. corn crop is planted. This is almost double the planting progress that we saw at the end of April of 2015. Continue reading