All posts by Chuck Danehower, Extension Area Specialist - Farm Management

12 Jan 2012

Updated Profitability Outlook

12 Jan 2012
Author:  Comments Off on Updated Profitability Outlook

This table should be used as a guide as yields, prices, and expenses will vary among producers and locations. This table looks at crop prices as of January 12, 2012 for 2012 and can give a glimpse of what crop profitability is in Tennessee as of this date. One of the expense items that have to be watched is fertilizer. For reference, in variable expenses below, fertilizer expense per acre is estimated as follows: cotton – $ 153, Soybeans – $55, Corn – $172 (includes 150 units of N), Milo – $138, and wheat/soybeans – $135. Continue reading →


12 Jan 2012

Comments on the January 12, 2012 USDA Supply & Demand Reports

12 Jan 2012
Author:  Comments Off on Comments on the January 12, 2012 USDA Supply & Demand Reports

Corn

In today’s report, final corn production increased 48 million bushels on a 0.5 bushel per acre increase in yield and 100,000 acre increase in harvested acres. This was 78 million bushels higher than the average pre report trade guess. The yield of 147.2 bushels per acre was a 0.5 bushel increase from the last estimate and 0.8 higher than the average trade guess. The only adjustment in usage was a 50 million bushel increase in exports reflecting a strong pace of sales and reduced prospects for Argentina. Continue reading →


06 Jan 2012

Weekly Crop Marketing Comments

06 Jan 2012
Author:  Comments Off on Weekly Crop Marketing Comments

Happy New Year and Best Wishes for a safe and profitable 2012! Cotton prices are up while corn, soybeans, and wheat prices are down for the week. The March U.S. Dollar Index before the close on Friday was at 81.58, up 1.05 for the week. The Dow Jones Industrial Average before the close was up 168 points for the week at 12,386. Crude Oil was trading before the close at 101.54 a barrel, up 2.71 a barrel. The unemployment rate was reported today at 8.5%, the lowest in nearly 3 years. Weather concerns in South America still dominated market action this week. Continue reading →


22 Dec 2011

Weekly Crop Marketing Comments

22 Dec 2011
Author:  Comments Off on Weekly Crop Marketing Comments

This will be the last crop marketing comments for 2011 and I would like to take the opportunity to wish you a merry and safe Christmas and Holiday season. Markets will be closed on Monday, December 26 and January 2. Prices are through Thursday, December 22. Corn, cotton, soybeans, and wheat prices are all up for the week. The March U.S. Dollar Index before the close on Thursday was at 80.26, down 0.57 for the week. The Dow Jones Industrial Average before the close was up 302 points for the week at 12,168. Crude Oil was trading before the close at 99.56 a barrel, up 5.81 a barrel regaining last week’s losses. Continue reading →


16 Dec 2011

Weekly Crop Marketing Comments

16 Dec 2011
Author:  Comments Off on Weekly Crop Marketing Comments

Corn, cotton, and wheat prices are down for the week while soybean prices are up. The December U.S. Dollar Index before the close on Friday was at 80.23, up 1.52 for the week. The Dow Jones Industrial Average before the close was down 328 points for the week at 11,868. Crude Oil was trading before the close at 94.04 a barrel, down 5.23 a barrel or 5.3%. Uncertainty from Europe continues to affect the Dollar valuation and by extension commodity prices. There is not a clear indication which way the European debt crisis will go and it definitely has an effect on prices whether through strength in the Dollar or concerns on how much cotton products a weak European economy would need. Continue reading →


09 Dec 2011

Weekly Crop Marketing Comments

09 Dec 2011
Author:  Comments Off on Weekly Crop Marketing Comments

Cotton, soybeans, and wheat prices are down for the week while corn prices are mixed. The December U.S. Dollar Index before the close on Friday was at 78.72, essentially unchanged for the week. The Dow Jones Industrial Average before the close was up 177 points for the week at 12,196. Crude Oil was trading before the close at 99.27 a barrel, down 1.69 a barrel. European leaders agreed on some measures to shore up their financial crises, but disagreed on others. Today, the effect was positive as Wall Street rebounded and the dollar was weaker. However, this could be an on again off again deal and continue to cause uncertainty until some positive results are seen. USDA released their monthly supply & demand report today which has overall been considered bearish to the market as U.S. ending stocks increased for corn, soybeans, and wheat while global stocks increased for cotton. Continue reading →


09 Dec 2011

Comments on December 9 USDA Supply & Demand Report

09 Dec 2011
Author:  Comments Off on Comments on December 9 USDA Supply & Demand Report

Corn

In today’s report, corn, soybeans, and wheat production was unchanged awaiting the January production report for any updates. The only change made in U.S. corn stocks was a 5 million bushel reduction in food and seed resulting in a corresponding 5 million bushel increase in ending stocks to 848 million bushels. The average trade estimate was looking for a 5 million bushel reduction in stocks at 838 million bushels.  Feed and residual use, corn for ethanol, and exports were left unchanged. The stocks to use ratio is estimated at 6.7%, unchanged from last month. Continue reading →


02 Dec 2011

Weekly Crop Marketing Comments

02 Dec 2011
Author:  Comments Off on Weekly Crop Marketing Comments

Corn, cotton, soybeans, and wheat prices are all up for the week. The December U.S. Dollar Index before the close on Friday was at 78.79, down 1.04 for the week. The Dow Jones Industrial Average before the close was up 823 points for the week at 12,055. Crude Oil was trading before the close at 100.33 a barrel, up 3.56 a barrel. Outside influences may have affected more the Dow this week than commodity prices, but at least prices are up for the week. A surprise coordinated move by six major central banks around the world to provide liquidity at very low interest rates was put in place to avoid a meltdown in the euro. Continue reading →