West Tennessee Grain Bids 1-13-2017
Corn: September corn futures only increased by a penny over the past week. The latest USDA report did not contain any major changes from last month’s report. As a result, corn prices have traded virtually sideways yesterday and today. Brazil and Argentina will begin their corn harvest next month. The size of this crop could impact U.S. corn prices as we edge closer to planting.
Soybeans: November futures increased by $0.36 over the past week. The latest USDA report reduced the size of the U.S. soybean crop. This was a major surprise to the soybean market. Most analysts were expecting an increase in this week’s report. Brazil is currently harvesting their soybean crop and Argentina will start next month. The size of this crop will influence U.S. soybean prices until we know the U.S. planting intentions.
Wheat: The USDA reduced winter wheat acreages in this week’s report. The 2017 wheat crop is thought to be the smallest wheat crop in over 100 years. As a result, July wheat futures increased by $0.07 over the past week.
Cotton: December cotton futures closed at 0.709. Cotton equities continue to range between $0.10 and $0.13 for 2016 equities and $0.15 for 2017 equities.
Take Home Message: With the recent rally in soybeans, producers may look at the potential of booking soybeans above the $10.00 level for the 2017 crop year. Producers should look at their costs of production to determine profitability levels and work with suppliers for input prices for 2017. UT Extension crop budgets for 2017 will be ready within the next few weeks.
