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

Drought continues to persist in the western half of the U.S. As of May 3, the USDA estimated
that 23% of corn, 56% of cotton, 14% of soybean, and 69% of winter wheat production were in areas experiencing drought. 22% of winter wheat and 36% of cotton were estimated to be in extreme-to-exceptional drought, compared to only 4% for corn and 1% for soybeans. There may be some relief in the 7-day forecast for the southern plains, however it is likely insufficient to provide substantial relief. The seven-day forecast also has 1-3 inches of precipitation in the Northern Plains and Eastern Corn Belt, which could contribute to additional plantings delays. USDA estimated corn planting progress at 14% compared to the 5-year average of 33% as of May 1. Continue reading at Tennessee Market Highlights.

In West Tennessee, farmers were busy planting corn and soybeans and preparing to plant cotton. Winter wheat condition looked good across the region, as did pasture condition. In Middle Tennessee, corn and soybean producers picked up the pace of their planting. Wheat condition was reported as good throughout the region as well. Other activities included the application of fertilizer and herbicides. In East Tennessee, farmers began planting corn and soybeans, with some areas still reporting that rain was needed. There were 4.9 days suitable for field work.

Topsoil moisture was 8 percent short, 82 percent adequate, and 10 percent surplus. Subsoil moisture was 6 percent short, 82 percent adequate, and 12 percent surplus. Hay and Roughage Supplies rated 4 percent very short, 22 percent short, 66 percent adequate, and 8 percent surplus. Continue reading at  TN_CropProgress_05_01_22. The U.S. Crop Progress Report is available at US_CropProgress_05_01_2022.

Corn and cotton were up; wheat was down; soybeans were mixed for the week.
New harvest contract highs for corn and cotton were set this week. The last time the December corn contract was this high was 2012. That year the December contract peaked at $8.38 ¾ on August 21. Where was the December 2012 contract at the end of April? $5.43 ¼. The contract added nearly $3.00 between the end of April and the third week in August. Every year is different, and some weather concerns are factored into the current futures price, however if weather conditions are uncooperative over the next four months, we likely have another substantial leg up in this year’s corn market. Weather and the war between Russia and Ukraine will continue to make markets unpredictable and dramatic movements up or down can not be ruled out at this juncture. Continue reading at Tennessee Market Highlights.

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

Cotton futures prices jumped this week, gaining between 6.5 and 9.32 cents for the week,
depending on the futures contract. May futures closed Friday up 5 cents indicating a strong
likelihood of additional price gains early next week. After a January 31 to March 17 price lull, where cotton prices moved sideways between 115 and 125, nearby futures have broken to the upside. Increased energy prices, competition for planted acres, strong global demand, low global exportable supplies, and US Southern Plains drought concerns have propelled cotton prices higher. The December cotton contract closed on Friday at 111.74 cents. Continue reading at Tennessee Market Highlights.

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

Markets are trying to find where values should be. There continues to be a large amount of
uncertainty regarding commodity prices, due to the Ukraine-Russia conflict and political
responses by external nations. Futures markets have been very volatile, and are likely to continue to be volatile, as traders try to determine value between commodities and across time. Relative values and values at different points in time are influenced by many factors simultaneously. Continue reading at Tennessee Market Highlights.

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

Corn and soybean harvest futures set new contract highs this week at $5.99 ½ and $14.72. The upward trek in corn and soybean markets have been remarkable. A positive addition to increased prices is creating a very solid risk management base through elevated projected crop insurance prices (prices will be finalized February 28). There remains a lot of bullish momentum in soybean and corn markets, but there are also substantial risks. Continue reading at Tennessee Market Highlights.

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

Limited changes were made to the domestic supply and demand balance sheets with soybean crush up 25 million bushels, cotton exports down 250,000 bales, and wheat total use down 20 million bushels. However, major revisions were again made to South American production. Brazil’s corn and soybean production were projected 39 and 184 million bushels lower, compared to last month. Argentina and Paraguay soybean production was projected 55 and 81 million bushels lower. The drought in South America has clearly adversely affected production, but the full impact is unlikely to be realized for several months. US prices and exports will continue to be supported by lower South American production. Continue reading at Tennessee Market Highlights.

Cotton and soybeans were up; wheat was down; and corn was mixed for the week.

We have entered arguably the most important time of the year, for risk management, for spring planted row crops in Tennessee – the projected price determination period for corn, cotton, and soybeans. The prices established will be the starting point for many producers’ risk management plans for the 2022 crop year. As of February 4, the projected prices were, corn $5.73, soybeans $13.88, and cotton $1.03 (wheat projected price was set September 15 at $7.14). The next three weeks will determine the final projected prices, but current prices are very positive for crop producers. Continue reading at Tennessee Market Highlights.