Special Market Update
Grain Market Commentary
Monday, August 13, 2018
By Louis Kaelin, Account Representative, The Andersons
New crop corn finished down $.0125 at $3.5650. After last week’s report corn has been down $.11 cents. A big reason for the fall in corn is the new yield number of 178.4 which is up from the 174 in June. Also, with the new yield news we are still trying to figure out our trade war with China. On a positive note the fund position liquidated their position from 52,000 contracts to 29,000 contracts short. We have also shrunken our carry out number from 2.127 million bushels for 2017/2018 to 1.733 million for 2018/2019. Here in Nebraska at least corn basis feels like it has backed off fairly quickly. So, if you have a lot of unsold corn and can’t store it I would look at setting basis to make sure you secure a home at harvest because it could get ugly.
New crop beans finishes up $.07 at $8.6875. After last week’s report beans have been down $.35 cents. A big reason for that fall is the new yield number of 51.6 which is up from the 48.5 in June and one of the largest carry out in history. Also, the tariff war with China has a firm lock on the market right now as well. I know here in Nebraska bean basis has backed up tremendously at all elevators and bean crushers. It will be a very interesting year with all of the acres in beans and homes filling up already.