September 9, 2019: Mark's Market Talk

September 9, 2019

We saw the grain markets slip lower again last week as the funds continue to trade the August crop reports. The weather has been late crop friendly as we aren’t seeing any mention of frost in the 10 to 14 day forecasts. Corn exports are still dragging as Argentina keeps lowering their price so they can get their corn exported. They don’t have the ability to store a lot of grain like the US can, so they do what they have to get rid of it. On the other hand, we have ample storage in this country so we have become the world’s warehouse. This sometimes makes us the source of last resort which we are seeing right now. For the week corn lost 14 cents while beans were down 11. We will see some new USDA numbers this week but probably the only change they might make is with the demand side which could raise the carryout some. The past 3 to 4 years we have seen a 50 to 75 cent bounce from the August corn lows into harvest. 2 weeks ago, it looked like we had bottomed out but this past week proved us wrong. Nearby basis is still on the positive side as corn users are having to push the bid to secure corn supplies. The bean basis slipped almost a dime last week as the processors get enough bought to get them to new crop. The cooler weather is delaying the start of harvest in this area. The farmers that normally start I n early September are looking to maybe start harvesting corn the last week of the month due to high moisture of the corn. Beans that were planted in April are starting to turn and there might be some of them ready by the first of October but most of the beans will be ready 2 to 3 weeks late this year.
Posted: 9/9/2019 8:58:25 AM by Rob Matherly | with 0 comments