Weekly Market Recap August 24, 2018
Friday, August 24, 2018, 1:08 PM
Submitted by: Landus Cooperative
Last Friday, CFTC reported funds took 4,743 contracts off their net short position for corn, putting them at -24,962 contracts as of August 14th. On the flip side, they added 2,641 contracts to their net short position for beans, going to -58,924 contracts.
Monday’s crop progress report continued the trend from the previous week, dropping corn good/excellent ratings another 2% to 78% and soybeans 1% to 65%. It is normal for conditions to drop off around mid-August, so this news did not offer any support to prices. Corn ended Monday down 2 ¼ cents. Beans were up 12 to 13 cents in the morning, but were only able to keep fractional gains by the close. Rain across the Western Corn Belt continued putting pressure on the market as we moved into Tuesday. This combined with waning optimism over productive trade talks between the U.S. and China resulted in both corn and beans ending in the red, corn down 2 ¼ cents and beans down 7 ¼ cents by the close.
We saw a similar story Wednesday and Thursday, with promising results from the Pro Farmer tour supporting the USDA’s yield estimates. Not only are these numbers above last year’s yields, but they are also above the 3-year average. Despite all of the bearish news, both corn and beans were able to end today in the green. Corn closed up 1 ¾ cents today, but down 16 cents from last Friday’s close. Today, soybeans closed up 1 ½ cents, but 37 ½ cents lower than where they ended last week.
Be sure to set aside some time prior to harvest to visit with your GMA about your marketing options for unsold bushels. It’s much easier to have a plan ahead of time than to try and decide what you want to do on day 20 of your delivery.
We hope to see everyone next week for the Farm Progress Show and our Customer Appreciation Dinner. Be sure to RSVP to your GMA or the trade floor prior to Wednesday’s dinner.
Have a happy and safe weekend!