Corn had another choppy day of trade with a relatively tight range ending a couple pennies higher; this is the first time that corn has strung back to back higher closes together in almost 3 weeks. It is doubtful however that we can pull much away from a $.03 higher move over a 2 day span. The markets seem to be biding their time until the September S&D report comes out on Friday morning. The main corn news of the day was a wire story indicating that farmer’s in Argentina are expecting to plant 24 percent less land to corn this year; this is after last year also saw a significant reduction in planted area. The BA grain exchange is expecting 1.875 million hectares this year compared to 2.46 million two years ago. U.S. weather stills looks favorable with average to above average temperatures forecast for the next two weeks. Hopefully this will help crops catch up a bit to normal.
Soybeans slid lower today as the Chinese demand of last week has been absent this week. It should still be noted that the size of the business already done to China for the next marketing year is still very impressive. We need to get other destinations involved again to help put some support under new crop basis values again. Increased harvest activity in the southern U.S. has helped to supply the cash market and has helped bring cash levels back down to a modest premium to new crop values. We still see old crop basis levels as being strong at the processor level so if you have old crop beans we would encourage you to give us a call for ideas on what to do with these bushels.
Thanks, Phil Farrell
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