Corn and cotton were down; soybeans were mixed; and wheat was up for the week. For the second consecutive week, March corn set a new contract low, this time at $3.48 ½. Abysmal export sales year-to-date point toward a significant reduction in 2015/16 marketing year exports on January’s WASDE report, along with a corresponding increase in carryover stocks into the 2016/17 marketing year. The key obstacles to a significant rally in corn prices – a high USD and a surplus supply of coarse grains domestically and globally – remain a major problem that could easily get worse in 2016 before it gets better. March soybeans have traded in a 79 cent range ($8.47 to $9.26) since mid-August. Continue reading at Tennessee Market Highlights .
All posts by Chuck Danehower, Extension Area Specialist - Farm Management
Tennessee Market Highlights
Corn, soybeans, cotton, and wheat were down since Friday, December 18. December was a rough month for corn, soybeans, and wheat with the March, January, and March futures contracts, for corn, soybeans, and wheat, finishing down 13 ½, 9 ¾, and 4 cents, respectively, from where they opened the month. Cotton was the lone commodity, out of four, that had a positive month, as March cotton increased a modest 0.54 cents in December. This December was perhaps a fitting close to an underwhelming commodity price environment for many producers in 2015. Continue reading at Tennessee Market Highlights.
Tennessee Market Highlights
Soybeans were up; cotton and wheat were down; and corn was mixed for the week. On Thursday morning, March corn set a new contract low of $3.62 ½, before bouncing back on Thursday afternoon and Friday, closing down 1 cent for the week. Corn exports continue to lag well behind USDA projections at 17% (297.5 million bushels) of the 1.75 billion bushels projected for the 2015/16 marketing year. The five year average export pace would have 25% of the marketing year total (437.5 million bushels) exported by this week. Continue reading at Tennessee Market Highlights.
Tennessee Market Highlights
Corn, soybeans, and cotton were down; wheat was up for the week. The December WASDE report, released on Wednesday, provided limited modifications from the previous month’s report. Corn supply (beginning stocks + production + imports) was left unchanged from last month at 15.415 billion bushels. Corn used for ethanol was increased 25 million bushels due to the increased volumes put forth in the EPA’s RFS announcement on November 30th. Exports were decreased 50 million bushels due to the sluggish export sales pace year-to-date and an overall lack of price competiveness in global markets. Continue reading at Tennessee Market Highlights.
Comments on USDA WASDE Report and Profitability Outlook
December 9, 2015 – USDA World Supply and Demand Estimates
by Dr. Aaron Smith & Chuck Danehower
Corn
Projected U.S. feed grain ending stocks for 2015/16 are raised slightly this month. U.S. corn use for ethanol production in 2015/16 is projected 25 million bushels higher based on the strongerthan-expected pace of ethanol production during November as indicated by weekly data from the Energy Information Administration (EIA). EIA also raised its forecasts for 2015 and 2016 gasoline consumption in the December Short-term Energy Outlook. Corn exports for 2015/16 are projected 50 million bushels lower, reflecting the slow pace of sales and shipments to date and higher projected exports for Brazil and Canada. U.S. corn ending stocks are projected 25 million bushels higher at 1,785 million bushels. Continue reading at Monthly Crop Outlook.
Tennessee Market Highlights
Corn, soybeans, cotton, and wheat were up for the week. Corn and soybeans started December on a positive note with March and January futures contracts up nearly 10 and 25 cents, respectively. As we move into 2016, corn may have a difficult time maintaining the upward momentum as exports continue to substantially trail USDA estimates. Continue reading at Tennessee Market Highlights.
Crop Progress
As reported by NASS on November 30, 2015
MOSTLY DRY WEATHER BRINGS SIGH OF RELIEF
A period of dry weather last week enabled the majority of Tennessee’s producers to complete harvest of soybeans and cotton, as well as seed the 2016 wheat crop. Cattle are in good condition and wheat emergence is progressing well, greatly aided by the same rains that slowed growers’ progress in harvesting their crops. Continue reading at Crop Progress 11 29 15.
Tennessee Market Highlights
Corn and wheat were down; soybeans and cotton were up for the week. This past week was a short trading week due to the Thanksgiving Holiday. Corn export sales were up noticeably compared to previous weeks in spite of the USD index crossing over 100. Export sales will have to maintain or accelerate the sales pace of the past week in order to get back on track to meet the USDA’s export projections, which are currently 17% behind the 5-year average for export sales and commitments. Likely we will see additional export reductions on either the December or January WASDE reports. Continue reading at Tennessee Market Highlights.