Grain Newsletter
Planting is underway throughout the US and farmers are ahead of schedule nationwide. However, planting must go well if farmers are expected to plant the March 31 planting intentions the USDA put forth. They estimate a whopping 97 million acres of corn to be planted this year and 83.5 million acres of soybeans.
Markets have taken a turn for the worse with many producers still holding 19 crops. The signing of the phase 1 trade deal early in the year did nothing to boost prices like many “experts” thought that it would. Now we are faced with the coronavirus apocalypse, which has crippled the oil market leaving May oil futures trading at a negative. This, in turn, along with shelter in place orders, has left ethanol stocks surging and corn prices falling. Reports of the euthanizing of hogs and chickens have done little to help the hopes of feeding off some of the corn surplus.
Maryville cash prices May 10, 2019 vs May 11, 2020.
Corn 2019 $3.16 VS 2020 $2.85. -.31 x 150 bushel yield=$46.50/Acre worse than last year on corn.
Beans 2019 $7.39 VS 2020 $8.13 +.74 x 50 bushel yield= $37.00/ Acre better than last year on beans.
So, a 1000-acre farmer split 50/50 corn and beans is $9500 behind last year if nothing was sold.
If half the crop has been sold there’s a $4750 difference.
These numbers were put together just as a frame of reference to show that although corn looks a lot worse, beans look a lot better. Have a great spring and be safe.
Markets have taken a turn for the worse with many producers still holding 19 crops. The signing of the phase 1 trade deal early in the year did nothing to boost prices like many “experts” thought that it would. Now we are faced with the coronavirus apocalypse, which has crippled the oil market leaving May oil futures trading at a negative. This, in turn, along with shelter in place orders, has left ethanol stocks surging and corn prices falling. Reports of the euthanizing of hogs and chickens have done little to help the hopes of feeding off some of the corn surplus.
Maryville cash prices May 10, 2019 vs May 11, 2020.
Corn 2019 $3.16 VS 2020 $2.85. -.31 x 150 bushel yield=$46.50/Acre worse than last year on corn.
Beans 2019 $7.39 VS 2020 $8.13 +.74 x 50 bushel yield= $37.00/ Acre better than last year on beans.
So, a 1000-acre farmer split 50/50 corn and beans is $9500 behind last year if nothing was sold.
If half the crop has been sold there’s a $4750 difference.
These numbers were put together just as a frame of reference to show that although corn looks a lot worse, beans look a lot better. Have a great spring and be safe.