Corn: The latest WASDE report was released this week along with the Crop Production report. The USDA has decreased the national corn yield by 1 bushel per acre from 174.4 to 173.4. If the final yield does equate to this value, then this will be the largest corn crop on record. Despite the expectations of a very large corn crop, December corn futures have increased by $0.15 since the market’s open on Monday. In fact, corn closed at a three-month high, which is uncommon, especially during harvest. Local corn basis has continued to remain stable over the past week.

Soybeans: The USDA has increased the national soybean yield by 0.8 bushels per acre from 50.6 to 51.4 per acre. If this does occur, then an all-time record in soybean production would be established. Even though the USDA is forecasting a large soybean crop, November soybean futures have increased by $0.07 for the week. Soybean futures have been able to increase due to higher soybean exports and higher soybean oil prices. Local soybean prices come under pressure over the past few weeks and continue to soften.

Wheat: Wheat futures climbed higher this week due to better export demand for U.S. wheat. Wheat futures have also found support from the corn and soybean markets. The world still has plenty of wheat, but the recent increase in demand has allowed the wheat market to set a new two-week high. The wheat basis for new crop wheat is still quite weak.

Cotton: December cotton closed at 70.63. Cotton equities continue to range between $0.10 and $0.12 for West Tennessee cotton producers.
Take Home Message: The recent uptick in commodity prices may create some pricing opportunities for producers that do not have storage or have limited storage options. Producers should always consider their cost of production when pricing commodities. Grain and cotton should be priced when profitable levels present themselves.

Grain Elevator Bids for West Tennessee: grain-newsletter-10-14-2016