Mark's Market Talk
Dec 20, 2021
The week of Christmas is upon us. Kids and grandkids are waiting and hoping that Santa will be kind to them. As farmers we have to wonder if we will have more gifts under the tree, or have we already received everything we have coming to us. We have so much to be thankful for this year. Most of us had either record or near record yields. We also have had extremely good prices. I’m not sure that has ever happened in the same year here in southern Iowa. The fall weather has been very conducive to field work. There were not many rain delays during harvest, and I think anyone that wanted to put anhydrous on this fall has it done. This dry weather has come with a cost as our soils are dry and they will need replenished before the next growing season. However, we also know in this country that can happen real fast in the spring. We continue to see narrow trading ranges in the grain markets. The past week March corn was 3 cents higher while Jan beans were 17 higher. Dry weather in South America is putting just a touch of premium in the markets, especially beans. The reports so far show little or no crop loss to date, the real damage may kick in if they do not see rain in the next 3 weeks. We have learned in the US that the advanced hybrids and varieties can handle more heat and dryness than they used to. This is true in SA also, but not at the same level as their ground does not hold moisture and requires more frequent rain. The holidays may make the markets more subject to bigger moves as many traders lay low. Reduced volume isn’t always a good thing as a handful of traders can make something happen in a hurry. Once we get thru the next 2 weeks the board of trade will be looking for the January crop reports that will include a yield adjustment for the 21 crops. They will also continue to monitor the SA weather and our export business. This Friday is Christmas Eve, and the board is closed so there will not be any markets that day. The following Friday is New Year’s Eve, and they will trade normal hours. SFG locations will be closing at noon both Fridays so our employees can spend time with their families. Our employees have worked very hard this fall to make everything happen to provide our customer’s great service. We hope all of you will be able to spend time with your families and truly enjoy the holidays.