Harvest rolls on in the U.S. Focus has shifted from soybeans to corn in this part of the country. After record breaking bean yields most producers are happily surprised with what could prove to be record corn yields as well. Local elevators, already bursting at the seems following the huge bean harvest, are now faced with the prospect of a huge corn crop overfilling what little space remains available. Mountains of yellow are sure to be dotting the landscape in the coming weeks, covering seemingly every available grassy patch.
As a result of ongoing corn harvest and an extended open stretch of weather, corn futures traded lower for the week. A general lack of demand along with the big crop has had corn on the defensive. Soybeans, not ready to give up the lime light just yet, had a strong showing in the futures market. When the USDA returned to work after the long weekend, export inspections were well above expectations. This, along with additional sales announced daily, was enough to provide a big rally on Tuesday, pushing November beans above the $9.00 mark.
As the week wore on, exports lost their luster as big yields continue to weigh on the market. For the week, soybeans were able to hold some of the gains, however, November futures were unable to close above $9.00.
Local basis has held surprisingly steady through harvest pressure. Trucks keep rolling, but producer sales are still light. Until the commercial elevator fills allocated space and forces sales, basis should hold fairly constant. End users are getting their fill now, but general consensus says that once harvest is done, producers will lock the bin doors for a while. Look for potential basis opportunity at that time.
CHS – Rochester Grain Team
Kasson: 507-634-7545 ext 7
Ostrander: 507-657-2234