Mark's Market Talk

Aug 21, 2023

The state fair is done and school will start for most kids this week. That means summer is over except the weather is not acting that way. The heat is back and looks to stay most of this week. It may not be a big problem for areas with plenty of moisture, but most of our area is not in that category. For most the corn is made but this heat can still cause some set back and lighter test weights. Meanwhile a lot of our beans need that final August rain to finish pod filling. Late last week we saw the markets start to respond to this late season heat wave. Corn ended the week 6 cents higher while beans were 46 cents higher. Perhaps the preharvest lows have been put in, at least until we start to see some actual harvest data. The Pro Farmer tour will take place this week and it may grab some headlines as they make their way across the mid-west. They will have nightly updates and then a complete report later in the week. As always where they take their samples will play a huge role in their final yields. This year it will be very easy to find above and below average yields 10 miles apart in many areas of the country. Rain events started and stopped on a dime and lucky ones got the needed rain while others struggled to get by. Basis levels for old crop grain continues to be strong in most areas as terminals are struggling to find enough grain. Soy crush and ethanol production are both very profitable so these plants want to keep rolling at capacity right on through new crop. New crop prices improved last week but are still not attracting much attention. Farmers planted the most expensive crop in history and now it is tough to lock a profit in. Will this lead to more stored grain this fall? Perhaps we will return to a carry market that will allow us to hold for better prices down the road.