August 26, 2019: Mark's Market Talk

August 27, 2019


Another week of lower markets as we head toward the last week of August. Corn ended the week 13 cents lower while beans were down 25 cents. This came a week after the USDA shocked once more with their acreage and yield report. The pro Farmer tour finished up Friday and their corn yield prediction came in at 163.3 versus the USDA’s 169.5. This should be considered bullish, but we have too many issues right now on the demand side as the ethanol industry is struggling and exports are losing out to South America’s big crop. Pro Farmer estimates the bean yield at 46.1 which is 2.4 bushels less than the USDA. However, they also noted the lateness of the crop and advised that anything close to an early frost will take yield away in a hurry. With the funds short the market a frost scare could be a spark that will put value back into this market. Back on the corn side we need to get past this coming week to maybe see some improvement. The past 3 years we have seen the lows come on the last week of August as this is a popular deadline to price DP bushels. It seems a lot of farmers hold on thinking prices will get better then they have to bail at the last minute. It may also take some harvest data before we see any big moves. Traveling to and from Colorado last week we saw great corn in Nebraska and poor corn in Kansas. I can remember when corn was a rarity in northwestern Kansas as everything was wheat. Now you see a lot of corn and little wheat. This year may remind them why their parents grew wheat in those drylands.
 
Posted: 8/27/2019 9:12:31 AM by Rob Matherly | with 0 comments