Corn: This week’s decline in commodity prices can be blamed on the weather. Favorable forecasts for the Midwest continue to persist and it is keeping downward pressure on corn futures. Couple that with the anticipation of a large crop and you have a recipe for lower corn prices. Of course, the size of the overall crop will be determined by how much rainfall is received across the corn belt. Forecasts appear favorable for pollination with plenty of rain and milder temperatures in the lineup. Exports were not reported today due to the holiday. On Tuesday, the USDA released the latest Crop Progress report. According to that report, 15% of the crop is silking and 75% of the nation’s crop is rated good-to-excellent. The combination of 94.1 million planted acres of corn and a crop rating of 75% good-to-excellent has been the one-two punch that has knocked corn prices lower. September corn futures have decreased by $0.16 since the market’s open on Monday while local harvest basis for West Tennessee averaged -$0.07.
Soybeans: Soybeans futures have declined this week as well. Forecasts of milder temperatures triggered fund selling of soybean contracts. The latest USDA crop progress report rated the nation’s soybean crop as 72% good-to-excellent with 22% blooming . The story for soybeans is the same as corn. The continuance of favorable forecasts and larger than expected planted acres has soybean futures on the defensive. As a percentage, soybean prices have rallied more than corn prices. Therefore, it stands to reason that their decline could be greater than the decline in corn futures. Since Monday’s open, November soybean futures have decreased by $1.13 while the local harvest basis for West Tennessee averaged -$0.07.
Wheat: Wheat futures continue to suffer from harvest pressure as harvest continues in the Southern Plains. The wheat crop in Kansas is reported as being rather large this year. Per the USDA, 58% of the winter wheat crop has been harvested as of July 3, 2016. September wheat futures have decreased by a nickel since the market’s open on Monday while local basis for West Tennessee averaged -$0.18.
Cotton: December cotton futures closed at 64.90. As of July 3, 2016, the USDA reported that 56% of the nation’s cotton crop is rated good-to-excellent. Also, 42% of the crop is squaring while only 11% is beginning to set bolls. Cotton equities, or loan options, for new crop cotton continue to range between $0.10 and $0.12 for West Tennessee.
West Tennessee Grain Bids: Grain Newsletter 7-7-2016
