Grain Tidbits - August 31, 2018

9:58 AM 8/31/2018

The last day of August.  The month has not been kind to the grain markets.  In the nearby corn futures market, corn has lost 24 cents for the month.  New crop values have fallen 23 cents.  In the soybean futures market, values have dropped 70.25 cents per bushel for the month.   In Minneapolis Spring wheat, values have dropped a dollar per bushel.

Cash demand, as reflected in basis values, for soybeans  have not been favorable either.  We ended the month widening 25 cents on the basis on beans.  Demand for beans going to the west coast is nonexistent due to the Chinese being on the sidelines.  Since 1977, Brazilian farmers have increased their soybean plantings by fivefold.  Acres went from 7.07 million to 35 million hectares. They have also expanded corn, the second season crop.  They double crop corn on harvested soybean acres. Corn basis has held in fairly well widening 5 cents for the month.  At least corn is a salable product, and seems promising for demand to be good. Spring Wheat basis has been steady to down 5, with light receipts going into the Minneapolis cash market. With Russia one day seeming to limit exports due to a short crop, only to reverse the next day, the wheat market has a hard time deciding which way to go.  News is out this morning, reducing the Canadian wheat crop substantially, giving us a boost in values.

Our delayed price programs on soybeans and corn will be put out next week.  With basis levels wide and large carries in the futures market, we estimate there will be a lot of demand for space. We will update as soon as possible.

Have a safe Labor Day weekend! 

Jim Gallagher

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