Corn: Corn futures  traded lower this week due to an improved forecast for much of the Midwest. The forecast is now showing milder weather with more rainfall for most of the Corn Belt. We are in that time of year when weather now dictates the price direction of the grain market. Truthfully, the direction of the market can change from day to day based on changes in the forecast. And we all know that mother nature can be quite fickle this time of year.

Since last Thursday, September corn futures remained unchanged while the local new crop basis weakened by two cents.

Soybeans: The soybean market shares the same story as the corn market. The improvement in weather forecasts has taken some worry out of the market for now. In export news, weekly exports were up from last week’s levels. Also, Argentina has raised its soybean production forecast by 0.3 million metric tons. As in the corn market, weather will continue to dictate the price direction of soybeans.

November soybean futures declined by $0.39 since last Thursday. Local new crop basis for soybeans in West Tennessee decreased by $0.04.

Wheat: Harvest pressure continues to be burdensome to wheat prices. Now that harvest is in full swing, we are starting to see that the winter wheat crop is going to be a good crop overall. Producers are reporting very good test weights and yields seem to be averaging 75 bushels per acre. In some areas, reports of 100 bushels per acres are being reported. In export news, wheat sales this week were three times higher than last week’s.

July wheat futures declined by $0.38 since last Thursday. New crop wheat basis averaged -$0.15 as of market close today.

Cotton: December cotton futures closed at 64.95. Cotton equities for West Tennessee continue to range between $0.10 and $0.12.

Take Home Message: We are beginning to see some of the gains made in the commodities market retreat as weather conditions for the Midwest improve. Producers should monitor futures prices closely if they do not have many bushels booked. Producers should continue to view their cost structure to make sure that grain sold is at profitable levels.

West Tennessee Grain Elevator Bids: Grain Newsletter 6-16-2016