Cotton was up; corn and soybeans were down; and wheat was mixed for the week. This week we saw locations in Tennessee with cash corn prices under three dollars for the first time since harvest 2014. Unfortunately, we will likely see more locations with sub-three dollar cash prices as we enter harvest. Now is a good time for producers to review their storage options, before harvest gets in full swing. First, evaluate on-farm storage capacity and crop mix. Determine the number of bushels of storage available on-farm and prioritize which crops will be stored on-farm if production is expected to exceed storage capacity. Continue reading at Tennessee Market Highlights.

SHOWERS BRING RELIEF

Widespread showers brought much-needed moisture to much of the state, improving most row crop conditions. Major activities included spraying for pests and preparing for corn harvest. The rains aided pasture conditions, which, in turn, helped livestock conditions. Some tobacco growers were reporting that conditions were unfavorably damp for dark tobacco. There were 4.5 days suitable for field work.  Continue reading Tennessee NASS report at TN_07_31_16. The U.S. Crop Progress report can be read at CropProg-08-01-2016.

Soybeans and cotton were up; wheat was down; and corn was mixed for the week. On Friday, harvest futures for cotton and soybeans closed the month out on a high gaining 1 cent and 25 cents, respectively. The two commodities had dramatically different fortunes in July. December cotton futures closed up 9.49 cents (opening at 64.55 and closing at 74.04) and finally broke above 70 cents for the first time since September 2014. November soybeans plummeted in July losing $1.50 (opening at $11.53 and closing at $10.03). Continue reading at Tennessee Market Highlights.

The 2016 Mid-South Agricultural Finance Conference is set for August 3, 2016 at the Boling University Center on the campus of the University of Tennessee at Martin. Registration and continental breakfast starts at 8 a.m. with the program concluding at 2:45 p.m.  The registration fee for farmers and producers is $75, spouses and students are $25. For more information on registration please go to the Mid-South Ag Finance Conference website. Continue reading →

HOT, DRY WEATHER TAKES TOLL ON CROPS

While scattered showers brought much-needed moisture to some areas, hot, dry weather dominated most of the state. Corn and soybean producers were concerned about the dry conditions stressing their crops. Tobacco growers were reporting disease pressures. Summer haying continued with producers reporting reduced yields. Continue reading Tennessee NASS report at TN_07_25_16. The U.S. Crop Progress report can be read at CropProg-07-25-2016.

Corn, soybeans, and cotton were down; wheat was mixed for the week. December corn established a new contract low on Friday at $3.33 ¼. Corn futures are now at the lowest point since October 2014 when prices bottomed out at $3.18 ¼. Adequate moisture, limited excessive temperatures-to-date, and improved July-August forecasts have been the primary driver for harvest futures declining from a high of $4.49 on June 17 to the new low this week (a net decrease of $1.16 per bushel or a 26% loss in value). Harvest soybean price declines have been just as dramatic as corn, with a decrease of $2.20 per bushel or 18.5% ($11.86 on June 13 to a low of $9.66 on July 22). Continue reading at Tennessee Market Highlights.

CONTINUED RAINS IMPROVE CROP AND PASTURE CONDITIONS

Continued rains in the eastern part of the state helped the condition of pastures and crops immensely. Some producers are looking forward to additional cuttings of hay soon. Overall, crops are continuing to progress well in West Tennessee. Scattered showers to heavy rains last week brought relief to crops, but a general, soaking rain is still needed. Heavy rainfalls in Middle Tennessee practically shut down field activities with the exception of sucker control application. Continue reading Tennessee NASS report at TN_07_18_16. The U.S. Crop Progress report can be read at CropProg-07-18-2016.

Corn was down; cotton was up; and soybeans and wheat were mixed for the week. Volatility in soybean futures continued this past week as traders adjusted to weather forecasts and USDA supply and demand reports. From Monday to Friday, November soybeans traded down 17, up 29 ½, up 10 ½, down 43 ¾, and down 5. Volatility can provide producers with greater pricing opportunities but it also makes the pricing decision more difficult due to reduced certainty in market direction or fear of pricing too low. As such, it is very important to know how much production you are comfortable pricing at specific price points and executing sales at those price points. Continue reading at Tennessee Market Highlights.