Corn: Over the past week, corn futures have struggled to gain ground. September corn futures have increased by $0.03 since the markets open on Monday. As the dollar continues to strengthen, corn exports will continue to face headwinds. However, ethanol production continues to remain relatively robust either due to building of stocks or an increase in gas consumption. The USDA will release their planting intentions report on March 31st. This will be the next major milestone for the corn market. New crop corn basis for West TN continues to remain negative with an average of -$0.12.
Soybeans: Soybean prices have come under pressure lately due to the size of the Brazilian soybean crop. This crop ended up being much larger than what the USDA had initially forecasted. The increase in supply from a foreign competitor and a strong U.S. dollar are two very bearish factors for U.S. soybean prices. As a result, November soybean futures have decreased by $0.08 since the market’s open on Monday. Currently, the USDA is forecasting an increase in soybean acres and a reduction in corn acres. New crop soybean basis for West TN continues to remain negative with an average of -$0.15.
Wheat: The only new news for wheat is the recent cold spell that we experienced in West Tennessee. The damage to the crop is unknown at this time and most likely will not be known for another 7 to 10 days. As winter wheat begins to exit dormancy, we will begin to focus attention to condition reports from the USDA. New crop wheat basis for West TN continues to remain in negative territory with an average of -$0.08.
Cotton: Cotton equities continue to be approximately $0.18 to $0.20. Cotton futures for December 2017 closed at 75.63, which is up for the week. Cotton futures continue to climb higher due to demand for old crop cotton and the positive outlook for new crop.
Take Home Message: Producers need to continue to monitor their estimated cost of production for the 2017 crop. Planting season is right around the corner and most producers are finalizing their crop mixes. Farmers will need to review their crop budgets and make sales as necessary when profitable prices present themselves. The next major market report will be the March 31st planting intention estimate from USDA. Until then and shortly after, corn and soybean markets will try to buy acreage.
West Tennessee Grain Bids: Grain Newsletter 3-17-2017
