6/8/2023

Jun 08, 2023


The time has come locally that all the corn processors have plunged to the September futures and take some risk off the table by getting out of the way of the July futures.  In doing so most of them took some of the spread with them, so while +75 the Sept might look good on paper, it was not favorable for the cash price.  The July/Sept spread traded out to 87.25 cents this morning before finishing back near 81 cents on the day.  That spread will stay volatile, so those you of with July basis contracts better be paying attention.  IF people get covered for their July futures needs that spread could implode and do so rather quickly.  I would be pricing your basis contracts sooner than later.  I have said it many times before, but I will preach it again. Invereses never have a good ending, so hanging on to old crop corn is risky and will be painful at some point as old crop and new crop prices come together.  

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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.