4/20/2021

Apr 20, 2021


4/20/2021
Corn and beans are now off the July futures.  Those of you with basis contracts left in the May need to be priced or rolled by mid next week.  Corn and beans rolled to new highs again today as both corn and beans remain well supported.  Farmer movement remains slow for now as we approach $6 cash corn and $14.50 cash beans.  Make sure you are taking advantage of these prices.  Can we go higher?  I think we can, but I would continue to scale up slowly on what you have left to price for old crop.  These are prices we don't want to miss out on.  Basis has improved drastically as movement is slow and the farmer hits the field, so that creates more opportunity.  It does not feel like we are stopping demand and slowing uses at these levels, so we continue to search for a price level that will.  Buckle in for a wild summer.  New crop movement has picked up some as we think about planting and see $4.80 cash corn and 12.35 cash beans for new crop bids.  It is a big discount to old crop, but is worth a look to lock in some margins.  Continue to scale up on sales and your average price should look good when this all shakes out.  
 

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Aug 15, 2025
Corn and beans both had nice gains heading into the weekend.  Corn might seem terrible as of late, but for corn to only be down 2 cents since report day is impressive.  That was one of the most bearish reports for corn we have seen in quite some time.  Corn finished the week 13 cents off its lows and unchanged for the week.  New crop corn basis has softened a little on the week as the extra 2 million acres and 8 bushels of yield from the report has also scared a few exporters off. 
Aug 12, 2025
The USDA report today didn't treat the corn market very well.  Both corn acres and yield were higher the result has corn carryout over 2.1 billion bushels.  Corn yield was pegged at 188.8 bpa vs an estimate of 184.29 bpa.  How high is 188.8?  Well…the previous record was 179.3.  Planted corn acres were put at 97.3 million.  Total corn production is estimated at 16.742 billion bushels, which is 763 million more than the report estimates.
May 12, 2025
News broke Sunday that the USA and China have agreed to ease tensions and lower tariffs.  The US is lowering tariffs on Chinese goods from 145% to 30%.  China is lowering their import tariffs from 125% to 10%.  Talks will resume in the coming weeks.  This news had stocks, grains and oil higher overnight. Then of course we had a USDA grain report come out at 11:00 this morning.  That was also a bit friendly.