5/7/18: Mark's "Market Talk" Blog

It wasn’t quiet in the grain markets last week. Corn pushed to some of the highest board prices we have seen in almost a year. Dry weather in South America and thoughts that we may drop below a 2 billion carryout next year in this country helped us along. July corn was up 8 cents and December finished the week 6 higher.

Farmers were asking this week if they should be pricing some new crop corn. My answer was to compare what is being offered today to what was being paid at harvest time the last 2 years. If you have to move some corn at harvest you should probably get some of it priced. A lot can happen between now and fall and though today it appears we might see higher corn prices we can’t be sure.

As always you should look to sell in increments so you can catch an average and you always hope the next sale is better than the last one. Last Thursday there were reports that the trade talks between the US and China were going well so we saw a nice bounce in the bean trade. Then Thursday night word came that the talks did not end well and Friday we lost all of Thursday’s gain plus some.

At the end of last week July beans were 20 cents and Nov was off 10. Meal prices had been a price leader the past 6 months and now it is having trouble holding value which will affect the whole bean complex. Basis levels seem to change almost daily as the farmer is almost out of beans and the plants seem to be playing chicken with those that still own some.

The river market is currently at a discount to the interior plants as high barge rates and high water is having an effect. Next week’s supply and demand report may give beans their next direction as it is too early for any talk of a reduced US crop.

 

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