May 10th Supply and Demand Estimates and Profitability Outlook 

This link to Supply & Demand Estimates & Profitability Outlook contains a  summary of the USDA’s monthly World Agricultural Supply and Demand Estimates (WASDE) report. Domestic balance sheets for corn, soybeans, cotton, and wheat are displayed along with price reaction in futures markets for each commodity on the day of the report release. Additionally, supply and demand estimates for key importing and exporting countries are provided for the current month along with change in estimates from the previous report. The Profitability Outlook section contains estimated returns per acre for each commodity based  on 2015 Tennessee state average/trend yields and current price offerings (note: cotton prices include a seed and hauling rebate). Variable expenses are based on the University of Tennessee Extension 2016 Row Crop Budgets. Prices are updated monthly; expenses are updated as warranted during the year and may be different than the expenses contained in the 2016 Row Crop Budgets. This section provides an estimation of the current relative profitability amongst major row crops in Tennessee.

The report is prepared monthly by Dr. Aaron Smith and Chuck Danehower.

Corn: It has been a wild ride in the commodity markets this week. Corn, like the other grains, has had its fair share in the roller coaster ride this week. In fact,  September corn futures opened Monday at $3.80 and closed today at $3.92. The gain of $0.12 can be attributed mostly to the fear of what will happen to U.S. corn acres along with a spillover effect from the soybean trade. The Midwest has received rainfall in key growing areas that is delaying the planting of corn. Continue reading →

May 10th Supply and Demand Estimates and Profitability Outlook 

This link to Supply & Demand Estimates & Profitability Outlook contains a  summary of the USDA’s monthly World Agricultural Supply and Demand Estimates (WASDE) report. Domestic balance sheets for corn, soybeans, cotton, and wheat are displayed along with price reaction in futures markets for each commodity on the day of the report release. Additionally, supply and demand estimates for key importing and exporting countries are provided for the current month along with change in estimates from the previous report. The Profitability Outlook section contains estimated returns per acre for each commodity based  on 2015 Tennessee state average/trend yields and current price offerings (note: cotton prices include a seed and hauling rebate). Variable expenses are based on the University of Tennessee Extension 2016 Row Crop Budgets. Prices are updated monthly; expenses are updated as warranted during the year and may be different than the expenses contained in the 2016 Row Crop Budgets. This section provides an estimation of the current relative profitability amongst major row crops in Tennessee.

The report is prepared monthly by Dr. Aaron Smith and Chuck Danehower.

Corn: Both corn exports and new crop sales were lower this week. The lower sales contributed to the bearish tone in the corn markets. Speculative trading has been part of the driving force behind the lower corn prices this week. Continue reading →

Corn: Corn has been trading sideways this week. However, corn prices are still above the recent lows that we saw take place at the end of March. Better corn sales has contributed to the increase in corn prices. According to the today’s USDA export report, net sales of 2.2 million metric tons established a marketing year high for 2015/2016. This is an increase of 80% over the previous week. Actual exports were a tad lower than last week’s levels.

Planting is advancing rapidly across the U.S. According to the April 25, 2016 Crop Progress 30% of the U.S. corn crop is planted. This is almost double the planting progress that we saw at the end of April of 2015. Continue reading →