Weekly Market Summary June 22, 2018
Friday, June 22, 2018, 2:06 PM
Submitted by: Landus Cooperative
This has been another week that markets cannot seem to find traction to trade on. Monday, corn contracts lost between 5 and 6 cents by the close with nearby at $3.56 and December at $3.77 1/4. Soybeans managed a green day, if only slightly, with nearby closing up 3 at $9.08 1/2 and November up a penny at $9.31 1/2. The weekly crop progress report showed U.S. corn rating good/excellent at 78% this week versus 67% this week last year. Soybean emergence is also ahead of the 81% average at 90%, and the crop rating good/excellent at 73% versus 67% last year.
Tuesday proved to be another tough day for grain. Corn finished the day down 2 with July at $3.53 3/4 and December at $3.75 1/2. Beans had an especially hard time, being down 49 cents at one point but “only” losing between 19 and 20 cents by the close. July finished at $8.89 and November at $9.11. Wednesday was much more neutral, with corn and beans ending unchanged to a penny either side of mixed. July corn closed at $3.54 1/4 and December at $3.75 3/4, somewhat of a comeback considering they were down 7 cents at one point during the trading day. Soybeans also saw an uneventful close with July at $8.89 1/2 and November at $9.10 1/2.
On Thursday, corn was able to move in the right direction, closing up 2 3/4 on the board. Improvements in basis further supported that in the cash market. We also saw some basis help for nearby beans, but not enough to completely offset the board closing down 9.
Corn finished the week mixed, ¼ cent either side of unchanged. Soybeans had a strong end to the week, closing up 14 to 14 3/4. For the week, corn had a 4 to 4 3/4 cent loss from last Friday, and beans lost between 11 and 14 1/4.
Now is a good time to be talking with your GMA about what you have sold, both old crop and new crop, and your price expectations/goals. Even though it is hard to think about selling when markets are on a downward slide, we encourage you to have a plan in place so that you are ready to make decisions when we start to see improvements.
“As we negotiate what may be a fundamental change in our markets, I thought it was important to reassure and remind you, our members, of a couple quick messages.
At Landus Cooperative we continue to work on your behalf to remedy and clarify the current export provisions and associated damage being done. Through our leadership presence in the National Grain and Feed Association (NGFA), U.S. Soybean Export Council (USSEC), and National Council of Farmer Cooperatives (NCFC), and with every conversation we have with individual export customers, we are reiterating the importance of clearing the air over this matter and allowing for a price recovery as soon as possible.
More importantly, I want to recognize personally the hardship these markets create for you. We have and will continue to offer risk management tools that alleviate these risks and we have survived along with your family’s farm through many decades of change. We are truly an extension of your farm and will manage that responsibility accordingly.
Please call on any of our grain marketing staff anytime, including myself.”
Chief Commodity Marketing Officer