Corn: December corn futures ended the week $0.04 higher than where it began on Monday morning. Harvest is continuing at a very strong pace due to dry harvest conditions. Farmers across the Midwest continue to report large yields. The expectations of a very large corn crop is bearish for corn futures. However, corn futures increased this week by riding the coattails of the soybean market. In West Tennessee, the local basis on cash bids for corn increased by $0.04 this week. Export demand continues to remain strong and contributed to the increase in basis that we have seen this week in West Tennessee.
Soybeans: November soybean futures have increased by $0.18 since the market’s open on Monday morning. Exports for U.S. soybeans continue to be a positive note for the soybean market. Soybean farmers continue to progress very quickly with harvesting the bean crop. Dry conditions are allowing producers to keep the combines rolling. Earlier in the week, strength in the other oil markets supported higher soybean prices. Since then, the increase in soybean prices has tempered a bit with November futures closing $0.13 lower today. In West Tennessee, the local basis on cash bids for soybeans decreased by $0.06 this week.
Wheat: July wheat futures have decreased by $0.04 since the market’s open on Monday. Wheat prices are still limited by large yields in foreign wheat growing nations. The International Grains Council reported that global wheat production will be increased by 1.4 million metric tons to a total of 748.4 million metric tons due to an increase in wheat yields in Russia and Kazakhstan. In West Tennessee, the local basis on new crop bids for wheat increased by $0.04 this week.
Cotton: December cotton futures closed at 70.82 today. The trend of the cotton market continues to be sideways to slightly higher. An increase in end user demand and higher Chinese cotton futures is cited to be the reason for higher cotton prices this week. Cotton equities for West Tennessee producers increased slightly this week and are now ranging between $0.10 and $0.13.
Take Home Message: The increasing prices during harvest is not a seasonal trend that we expect to see. Producers should keep an eye on the market to see if the upward trend in commodity prices continues. This may allow for some profitable pricing points for soybean producers. Producers that have already planted wheat should keep an eye on wheat futures to see if there any profitable pricing points. The increase in new wheat crop basis is something farmers should continue to monitor.
West Tennessee Grain Elevator Bids: grain-newsletter-10-28-2016
