Grain Exchange – Snow, Snow, Go Away!
It’s beginning to look a lot like Christmas…. I mean, Happy Halloween? Wisconsin farmers woke up with a blanket of snow, and while it’s pretty, it is definitely one more challenge to add to the list. The corn market is trading close to even today while beans are softer. Brazilian soybean planting is in line with average, while their first crop corn planting is behind.
Monday’s USDA Weekly crop progress report showed an improvement in corn conditions to 58% Good/Excellent, up 2% from last week. Corn harvest is said to be about 20% behind average at 41% complete. US Soybean harvest is also behind average at 62% complete verses the 5 year average of 78% complete.
While corn moistures remain relatively high and farmers are thinking they might leave it a little longer to dry in the field, Purdue Extension Corn Specialist Bob Nielsen is recommending that they get out there and harvest if possible. Nielsen says that there is big risk of the crop going down with a big storm, and the loss of that, might be much worse than taking it off wet. With limited weather windows for harvesting, Nielsen suggests that it takes about 4 days for corn to dry a point. Waiting that long for corn to dry in the field may be a risk to stalk health, and the ability of the plant to withstand wind and storm damage. The forecast shows more snow and rain in the forecast for later this week, with some openings for cold and dry weather next week.
All eyes in the markets are still watching the China trade situation, and they will be watching closely as leadership is expected to sign the first phase of a trade deal on November 17th, 2019. However, China is still demanding more US tariff relief, but both sides are saying they are close to a deal. Funds have extended their longs in the soybean market but remain short on corn.
As always, continue to work through your marketing plan, and give us a call if we can help with anything!
Have a great day!