Grain Exchange – Larger Than Expected Corn and Bean Exports
Corn and bean exports were larger than expected. Corn sales this week were at 1.56 million metric tons vs expected at 900k-1.3mmt. Mexico bought 1.164 mmt of the 1.56 and the next biggest destination was Costa Rica at 99k. Soybeans were exceptional at 1.728 mmt vs expected at 700k-1.1mmt. Top bean sales were to China at 593k tonnes and 584K tonnes to unknown. In other news, the Federal Reserve voted to cut interest rates ¼ point for second month in a row.
As harvest is starting, we are starting to hear yields. Corn in southwestern Indiana made 220 bushels per acre vs last year at 235, 130 acres on good soil. On sandy ground of 95 acres went 190bpa vs last year at 195bpa (being the best year ever). This was all planted on April 11, 2019. South of Decatur, IL on light ground that ran out of moisture 170bpa vs 241 last year. Another farm had hog manure and healthy-looking crop ran 188 bpa vs 250 last year. Morgan, IL (Scott county) 108-day corn planted April 12th ran 212 bpa with moisture 19%-20% on 43 acres. Other field in same area 50 acres ran 230 bpa. Both fields are yielding about the same as last year and is pleasantly surprising the producer. Corn continues to trade a small trading range as trade start to see yields come in and watch exports. Make sure to finish up selling old corn and offer corn out in spring 2020 and fall 2020. Cash corn for October/November 2020 is around $3.70. A great spot to start layering corn sales in.
Soybean yields in Coles county, IL, planted May 14th with 2.9 maturity, 200 acres are 51.15 bpa, about 20 bushels less than last year but better than producers expected. Waverly, IA is seeing 30 bpa vs last year at 60+ bpa. Producers walking bean fields are stating no blooming, no pod development and the crop shutting down. US and China negotiators are meeting in Washington today and tomorrow for the first time in two months. These meetings setting up for next month’s talks with highest-levels negotiators. The meetings are expected to have a heavy agricultural agenda.
USMCA is seeing some progress with US House members on both sides of the aisle saying Congress and the White House are talking. There needs to be more exchanges before it will come to vote on the House floor.
It is never too soon to start your grain marketing plan for 2020. We are available to help get plan started ahead of harvest. Agronomy has great options for taking advantage of fall fertilizer. Also look at our Verity financing options. Landmark wants to help you from soil health to grain marketing options and everything in between.
Have a great day!