Mark's Market Talk for September 23, 2024

Last week was tough on the corn market as the December futures lost 10 cents. There was limited harvest pressure, but the recent rally has pushed us above the average world price and the export sales have slowed. Early yield reports have been better than expected in most areas. Basis levels are currently tied to where the harvest is progressing. Northern Iowa corn bids have been very attractive as they wait for new bushels and the available old crop is getting hauled to town. We should see some better basis levels in southern Iowa as the bean harvest gets going in the next 2 weeks and corn plants are left fighting over a limited amount of new crop corn. Beans fared a little better last week as the November futures closed 6 cents higher. Yield reports have varied from a little disappointing to better than expected. There is still some concern about the yields in areas that were too wet this spring and then turned dry late in the season. US beans remain competitive on the world market, and we saw some more sales last week. China has been buying several cargos which would normally push the market right along. However, they are still catching up on their normal buying as they have slowed their buying from us this marketing season. The Chinese economy is somewhat fragile right now and there is concern their citizens will not be able to afford the better types of protein they have been consuming. Their hog herds are struggling to get back to normal levels and that is reducing the amount of bean meal they need. Dry weather in South America is still catching the eye of some traders. They are getting closer to planting time, and they are missing the normal early spring rains they need to get the crops started. If this pattern persists it could become the spark, we need to push bean prices higher. As your harvest gets rolling take some time to make sure you are safe. Check equipment lighting, tires, and communication plans. Often we think that as farmers we are immune from accidents. Farming is one of the most dangerous occupations, so be careful out there.