Grain News – Local Harvest Wrapping Up
Corn was lower to start this week following the lower soybean market. Corn was down 3 cents on Monday. Concerns of slower global economy growth during 2019, which would reduce feed demand, was a factor in the corn market as well. The recent price collapse in crude oil has pulled gasoline and ethanol futures lower. This has caused negative margins at most ethanol plants in the Midwest. The weekly export inspections report showed 44 million bushels for corn, bringing the marketing year to date inspections to 516 million bushels which is 229 million more bushels than a year ago. The final crop conditions report of the year showed corn harvest at 94% completed. Wisconsin was reported at 88% complete.
Soybeans led the markets lower on Monday with January soybean contract down 18 cents. One main factor that contributed to the lower market are doubts that the meeting late this week between President Trump and Chinese President Xi will result in a settlement that reduces the tariff on U.S. soybeans into China. The generally favorably South American weather has allowed the southern hemisphere growing season to get off to a good start also is weighing on the soybean market. Brazil is basically done with their soybean planting and well ahead of schedule on their first crop corn planting as well. Some soybean harvest could start there already in late December into early January. Argentina is also off to a good start with crop conditions.
Soybean export inspections last week were 40.6 million bushels leaving the year to date total at 447 million bushels or 327 million bushels less than a year ago. This pretty much explains the weakness in the soybean prices and the huge carryout we have. The weekly crop report had 94% of the U.S. soybeans harvested. Wisconsin was at 94% as well.
Wheat was the only market trading higher off tensions between Ukraine and Russia in the Black Sea which could affect export tenders. In the final crop condition report of the year winter wheat was reported at 55% good to excellent down 1% on the week. The next weekly crop condition report won’t be until April 1st, 2019.
With the local harvest wrapping up, please let us know how we can help with your marketing needs for this recent harvest as well as the 2019 crop and beyond. Most of the best prices received for this crop were on forward contracts completed well in advance of planting. We can work with you to set realistic targets that can help meet your profit goals. If you have grain that you are still harvesting or that is on hold with us let us know if you plan to sell or store. We have several ideas that might work for you to include basis contracts or minimum price as alternatives to straight storage.