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Grain Exchange

Markets are quite ahead of USDA supply and demand report on Friday at 11am sharp.  China said it has agreed with the US to cancel tariffs in phases with no timeline.  No location has been announced for the signing of phase one with China.  US is unlikely to put more tariffs on for December 15th.   Also, in other China news, China’s Cabinet said they will build 165 million acres of high-quality farmland by 2022.

Soybeans are currently slightly higher this morning.  Yesterday the news that had beans trading down was Brazilian Real was dramatically weaker.  South America is seeing some rains and the Argentina area being drier.  Exports were much larger than expected with sales to China.  Markets are looking for a slight reduction in yield for beans tomorrow to 46.6 vs last month at 46.9 bushels per acre.

Corn exports were in line, but weak.  South Korea was rumored to have purchased 65,000 metric tons.  The market is looking for reduced yield tomorrow to 167.5 vs last month at 168.4 bushels per acre.  Weather does not seem to concern the market at this point.

With any report day, make sure to have offers in place and working.  A quick spike in the market happens often on report days.  Please make sure to be safe on the farm.  Slow down and take time needed to shut down equipment before doing repairs.

Make sure and enjoy the sun today!

Posted in Blog, Grain

Grain Exchange – Extended Hours Available

The sun is finally starting to show and the hopefully that means farmers are able to be in the fields.

US weekly crop progress was released yesterday the results are as followed:

  • Soybeans were 75% harvest vs 62% a week ago, still below 5 year average at 87%
  • Corn was 52% harvested vs 41% last week, still behind the 5 year average at 75%
  • Corn maturity is at 96% mature vs 93% last week, behind the 5 year average at 100%
  • Winter wheat is 89% planted, 71% emerged which is better than last year.

Corn ended down 2 which was surprising because the corn harvest was expected to be further along than where it is. It seems that yields have been better than expected.

Beans ended down 4, still no deal with China which was expected be almost completed by now. There is chatter that the UDSA could be lowering yield on Friday so there could be some potential in beans.

Wheat it up 5, so there is a least some positive in the market.

As inclement weather is approaching please stay safe. If you need extended hours to beat the snow please contact your local grain office.

Posted in Blog, Grain

Grain Exchange – Mixed Markets

The weather outside is frightful.  Looking outside it’s hard to believe it’s Halloween.  The markets are mixed on this last day of October.  It looks like the 2019 crop is going to be a fight to the bitter end.

Corn is down one and continues to trade in a narrow range.  Demand remains slow for corn, both export sales and ethanol.  The market could find support on expectations for USDA to lower its US corn yield forecast in it’s November report.

Soybeans are up two.  China and the US continue to talk about closing a phase one trade deal by mid-November.  If that gets done and demand returns to pre-tariff levels it should be supportive to the soybean price.  Export sales were within range of expectations.  The November report should give us a better grip on yields and where our carryout will be.

Keep in touch with your grain marketing specialist for all your marketing needs.
This is going to be a trying harvest for all, with weather delays, quality issues, and a shorter window to get the crop in, we will try our best to accommodate your needs.  Please be patient, we want everyone to go home safe at the end of the day.

Happy Halloween!

Posted in Blog, Grain

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!

Posted in Blog, Grain

Grain Exchange – Weather Forecast Continues to Bring Optimism

A quick glance at the local 10-day forecast gives me optimism that there will be the weather windows needed to do what we look forward to all year, harvest grain. Wisconsin’s soybean harvest came in at 32% completed vs last week’s 15% while the 5 year average for the same time frame was 55%.  For the US, the soybean harvest is at 46% completed vs an average pace of 64%.  Wisconsin’s corn harvest sits at 7% completed and the 5-year average is 24%.  The US is currently 30% completed vs a 5-year average of 47%.

Although crop progress was viewed slightly bearish, overnight markets made their way higher as traders say China has issued another 10 MMT quota of duty waivers for US soybeans. President Trump claims China has indicated that negotiations are advancing with hopes an agreement can be made next month in Chile.  The Chinese Vice Foreign Minister said they have achieved some progress and the world wants the two countries to end their trade war.

Over the last few weeks as harvest has been delayed and some optimism has grown in trade, funds have purchased bean futures and a modest amount of corn and wheat.  Although overall their position is viewed neutral, it allows for slight support of farmer selling as harvest moves slowly and business decisions are made in the spot market. It is important to always keep in mind breakeven and de-risk when possible/profitable. This year handling the crop will incur greater cost with extra drying, trips to town and most importantly quality management.  With the possibly of more discounts/costs in this crop making timely sales will be as important as ever.

Posted in Blog, Grain, Landmark News

Grain Exchange – Good Harvesting Weather

Finally, some good weather to get some harvest done!  Markets are reacting with news out of South China Morning Post, Chinese officials indicate they will “increase their purchases of US Farm products based on demand.”  Chatter has not indicated which commodities and how much and timing of delivery.  Markets will be chopping with any change in weather or news from China.  Weather maps in South America show rain coming for Brazilian areas.

USDA stated yesterday it will re-survey corn and bean harvested acres in Minnesota and North Dakota and will publish any changes in November 8th crop report.  Harvest is slow going on corn while most producers focus on getting soybeans harvested.

Britain and the EU has agreed on a draft Brexit deal.  The next step is getting U.K. Parliament to pass the final deal.

Informa estimates US spring 2020 acres at 95.3 million corn acres (up 5.1 million) and 85.3 million bean acres (up 8.8 million acres).

Make sure to have offers in and working as we see the spikes in the markets.  Also make sure to start putting sales on for Spring/Summer 2020 and into Fall 2020.  Thank you for your continued business.

Happy Harvest!

Melisa Schmidt
608-444-1607
Melisa.Schmidt@landmark.coop

Posted in Blog, Grain

Grain Exchange

Futures weaker this morning with China wanting tariffs rolled back before committing to big Ag purchases.  Midwest farmer selling is picking up in parts of the southern Midwest where harvest is moving at a faster clip than northern Midwest.  PNW soybean basis is firming after 6-30 inches of snow in northern Midwest.  While less moisture in the weekend forecast, 6 to 10 day forecast is calling for additional 0.5 to 1.0 inches or rain as we get into next week.

Have a safe and successful harvest!

Posted in Blog, Grain

Grain Exchange – Today is Another Report Day

Today is another report day! There have been many mixed reviews on what this report will bring, but most are bullish. Many estimate slightly lower yield from September as we see Iowa and Illinois report their yields on both corn and beans. There are also many assumptions that the grain stocks will be down as well.

Corn traded slightly lower over night and has been quiet this morning in anticipation of today’s report. Argentina has reduced their estimated production due to extreme dryness. Brazil estimates their production will be the same as previous year.

Soybeans slight up overnight and so far, staying within a penny or two of overnight.  Same as always there are still trade talks going on with China, but there has finally been some merit to the conversations with a few sales. As previously stated, Argentina is predicting less corn planted therefore planting beans in place of corn. Central Wisconsin is actively harvesting soybeans after a long wait.

Wheat is steady. Not much to report except many countries’ wheat production have been lowered due to weather.

Landmark grain has rolled out our new harvest hours. Rain or shine the elevators will be open.

NORMAL (MINIMUM) HARVEST HOURS

  • 7:30 AM TO 7:30 PM MONDAY TO SATURDAY
  • 12:00 PM TO 6:00 PM SUNDAY

As always if there is a request for longer hours, the hours will be granted.

During this time the grain team is working hard to make your harvest as flawless as possible. Open communication is key. If you have a request for hours, trucking, or market information please contact your grain marketing specialist.

Happy Harvest y’all!

Kasey Baker

Posted in Blog, Grain

From the Field

As fall approaches, we find ourselves challenged once again in Wisconsin. Humid weather paired with large amounts of rain has made it difficult for our dairy farmers that are trying to get silage corn off in a timely fashion. Dairies aren’t the only ones that have been affected by mother nature, combines have been held at bay from harvesting soybeans due to the recent moisture as well. I do not think that other than a later harvest that we will see many issues with our bean harvest. However, I do have some concerns with our upcoming corn harvest. My main concern lies with those farms where no fungicides have been applied, due to the growing amount of tar spots being found. In these fields, the increased amount of moisture is causing stalk rot. That could potentially cause corn to be toppled over making harvest difficult, resulting in a loss of bushels and potentially lower test weights and higher moisture due to disease.

On a more positive note, it looks like the weather is going to break our way for a few days. Knowing the determination of our farmers, they will make the most of this window and get their harvest in. It is also important to get your wheat and cover crops planted as soon as possible.

Thank you for letting us be a part of your operation. As always, if you have any questions or concerns please reach out to your Landmark agronomist for help.

Have a safe harvest!

Posted in Agronomy, Blog

Grain Exchange – Corn, Soybeans and Wheat are All Trading Higher this Morning

It is Tuesday and the markets are shining as bright as the sun.  Corn, soybeans and wheat are all trading higher this morning.  Corn is higher on increased risk of freezing and snow in the Dakotas and Nebraska later this week.  Positioning ahead of Thursday’s USDA reports is also supporting the corn market.  USDA crop progress report has the percentage corn mature at 58% complete and corn harvest at 15% vs 19% expected.  Crop ratings also decreased 1%.  Corn yield potential is down more than half a bushel an acre at 167.3.

Soybeans are also trading higher positioning for the WASDE report on Thursday. Harvest moved from 7% last week to 14% this week, behind last year’s pace at 31%.  Seventy-two percent of crop is dropping leaves, versus five year average at 87%.  Crop ratings fell 2% to 53% G/E.  More sales have been seen with China buyers taking 7.3 million bringing their total to 140 million bu for 2019.  There is talk of lowering yield and acres for soybeans also supporting the market.

Wheat is up as well.  Winter wheat plantings are at 52% versus 39% last week.  Wheat exports numbers have been on the low end.

There is a lot to watch this week.  The Supply and Demand report is released on Thursday, October 10 at 11:00.  The storm that is moving into the Dakotas and Minnesota and how far south the cold front will move and the potential for frost.

Please keep communicating with your grain market specialist, we are here for you.

Harvest is beginning at many of our elevators, we are excited to help you get your crop in.  This is a year for the record books, but let’s all work together to bring the harvest in safely.

Posted in Blog, Grain