Corn and soybeans were up; cotton and wheat were down for the week.

This week corn and soybean prices moved mostly sideways as markets are
awaiting the next round of USDA yield and production estimates. National and
Tennessee yields are anticipated to be record high for both corn and soybeans.
Current national average yield estimates from private companies are 177-182 bu/acre for corn and 50-54 bu/acre for soybeans. Current USDA estimates are national average yield of 178.4 bu/acre and 51.6 bu/acre and for Tennessee 174 bu/acre and 49 bu/acre. A one bushel increase or decrease in national average yield will add or subtract about 82 million bushels of corn or 89 million bushels of soybeans from total domestic production. The USDA releases the September WASDE on Wednesday (September 12). Continue reading at Tennessee Market Highlights.

ROW CROP HARVEST IN PROGRESS

Corn harvest was active over the past week, with good yields reported. Soybean and cotton harvest are expected to start in the coming week. Cooler temperatures stimulated pasture growth. There were 6.0 days suitable for field work. Topsoil moisture rated 6 percent very short, 27 percent short, 65 percent adequate, and 2 percent surplus. Subsoil moisture rated 10 percent very short, 31 percent short, 58 percent adequate, and 1 percent surplus.  Continue reading at TN_09_04_18. The U.S. Crop Progress report can be read at CropProg-09-04-2018.

Corn, cotton, and wheat were up; soybeans were down for the week.

A sharp rally on Friday allowed corn and wheat futures to finish the week up a couple of cents. Soybeans also had a strong finish Friday closing up 11-13 cents for the day, however, soybean futures were still down 9-12 cents for the week. Cotton moved mostly sideways for the second consecutive week. For now, the December cotton contract appears to  settling in an 80 ½ to 84 ½ cent trading range. Holding the bottom of this rage will be key as we move through September or prices may trend lower.

August was a disastrous month for commodity futures prices as trade disruptions and record projected domestic yields weighed heavily on markets. December corn opened the month at $3.86 ¼ and closed at $3.65, down 21 ¼ cents for the month. November
soybeans opened the month at $9.13 and closed at $8.43 ½, down 69 ½ cents for the month. September wheat opened the month at $5.55 ¼ and closed at $5.18 ½, down 36 ¾ cents for the month. December cotton opened the month at 89.39 and closed at 82.22, down 7.17 cents for the month. Continue reading at Tennessee Market Highlights.

The increase in wheat prices relative to the decrease in soybeans and corn has increased interest in Tennessee for planting wheat this fall.

By design or by accident, producers considering wheat have started the financial planning process for 2019. In doing so, there should be a comparison in how wheat will stack up to other crops competing for the same space on that acre of land. Continue reading at Southeast Farm Press.

USDA announced this week the details of the $12 billion trade assistance package.  One part of the package is the Market Facilitation Program (MFP).

MFP is established under the statutory authority of the Commodity Credit Corporation (CCC) and administered by FSA. For each commodity covered, the payment rate will be dependent upon the severity of the trade disruption and the period of adjustment to new trade patterns, based on each producer’s actual production. Continue reading →

FARMERS PREPARE FOR HARVEST

Spotty rains did little to hamper field work last week. Corn producers continued to prepare for harvest. Late season hay harvest also continued with some producers reporting problems with armyworms. Cooler temperatures helped the growth of pasture. There were 6.1 days suitable for field work. Topsoil moisture rated 6 percent very short, 22 percent short, 68 percent adequate, and 4 percent surplus. Subsoil moisture rated 8 percent very short, 25 percent short, 65 percent adequate, and 2 percent surplus.   Continue reading at TN_08_27_18. The U.S. Crop Progress report can be read at CropProg-08-27-2018.

Corn, soybeans, and wheat were down; cotton was mixed for the week. After last week’s gains, corn, soybeans, and wheat had large declines. Higher U.S. yield estimates, increased political uncertainty, and trade dominated agricultural news this week.

Currently, the USDA estimates national average corn and soybean yields at 178.4 bu/acre, an all-time high, and 51.6 bu/acre, 0.5 bu/acre below the all-time high in 2016. There is still a great deal of uncertainty in the USDA’s final yield estimates and usually adjustments will be made in future reports with the October/November Crop Production report typically shedding a more accurate light on final yields. However, in general, field tours and private estimates indicate the potential for higher corn and soybeans yields across several growing regions. So right now the prevailing thought is for upward yield revisions by the USDA, not down.

Political uncertainty is running rampant in Washington due to numerous issues faced by the Trump administration. Political uncertainty creates further complexity in already unpredictable commodity markets. Continue reading at Tennessee Market Highlights.

RAINS PROVIDE NEEDED MOISTURE

Rain fell over most of the state last week providing needed moisture and improving crop conditions. Corn producers were preparing for harvest, while cotton and soybean farmers were busy with last minute spraying. These rains also improved pasture conditions. There were 4.9 days suitable for field work. Topsoil moisture rated 6 percent very short, 18 percent short, 70 percent adequate, and 6 percent surplus. Subsoil moisture rated 7 percent very short, 25 percent short, 65 percent adequate, and 3 percent surplus.  Continue reading at TN_08_20_18. The U.S. Crop Progress report can be read at  CropProg-08-20-2018.