08-07-2012 06:51 AM - edited 08-07-2012 03:05 PM
At the close:
The Sep. corn contract settled 7 cents lower at $7.96, while the Dec. futures corn contract ended 4 1/2 cents lower at $8.00 1/2. The August soybean contract finished 2 1/4 cents lower $16.05 1/4, Nov. soybean futures finished 18 1/2 cents lower at $15.65 1/2. The Sep. wheat futures closed 4 1/4 cents lower at $8.89. Aug. soyoil futures ended $0.19 lower at $51.29. The Aug. soymeal futures finished $5.90 lower at $512.30.
In the outside markets, the NYMEX crude oil is $1.49 per barrel higher, the dollar is lower and the Dow Jones Industrials are 66 points higher.
Just returned from a field visit in southcentral Iowa. We tagged along with a crop adjuster. Here's what I walked away with:
--It's ugly, when you get out into these fields. I wonder if the market realizes the truth? I really wonder.
--I heard him say he has field appraisals, already, of 20, 30, and 40 bu./acre corn. A field we were in would barely do 40 bu./acre. The ears were dropping.
--Farmers will get their indemnity checks a lot faster if they are communicating with their crop adjuster now. The more you can prepare (paperwork wise) before the appraisal, the faster the process will go.
--The soybeans have pods. But, there are not many and they are not very big soybeans. BB-sized soybeans are feared for next year.
--His quote: "The soybeans are a trainwreck waiting to happen."
--On corn, farmers that are chopping are having to chop 25% more acreage than normal to get the tonnage they need.
--This is a bad year to decide whether you like a seed variety or not.
--Cornhead knives better be sharp to chop moisture-filled stalks.
--Did I say the crop situation is ugly? Let me say it again. The crop situation is ugly!
Jeff Caldwell and I visited with Dereck Klaassen, Field Supervisor with Farmers Mutual Hail Ins. Co.
The Sep. corn contract is 7 3/4 cents lower at $7.95 1/4, while the Dec. futures corn contract is trading 6 cents lower at $7.99. The August soybean contract is trading 1/2 of a cent lower $16.07, Nov. soybean futures are 13 1/2 cents lower at $15.70 1/2.
In the outside markets, the NYMEX crude oil is $1.59 per barrel higher, the dollar is lower and the Dow Jones Industrials are 82 points higher.
One analyst says, "The negative markets seem to be mostly about long liquidation.
"I expect a choppy weak, and today seems to be a sell day," he says. The reports, last night, showed more deterioration, but nothing more than the market expected."
Demand remains hard to find, he says.
"We're seeing a little new-crop selling from Brazil, in the back months. But, today started out with buyers looking at outside markets and those have not done much. So, they and other longs seem to be getting out until next week," he says.
Harvest is coming, the losses in corn will not get much worse, and we are not sure of the beans, he says. It's enough reason for caution," he says.
--Japan buys 106,530 mt of milling wheat Tuesday.
--Taiwan buys 58,000 mt of U.S. soybeans.
Early calls: Corn 5-7 cents higher, soybeans 13-15 cents higher, and wheat 5-7 cents higher.
Overnight grain, soybean markets=Trading higher.
Crude Oil=$0.23 per barrel higher.
Wall Street=Seen opening higher, with earnings season nearly over and little of economic reports.
More in a minute,
08-07-2012 06:56 AM - edited 08-07-2012 06:57 AM
I see a little rain cell in Kansas, this morning. Otherwise, zippo for the Midwest. Here's the latest from the Freese-Notis Weather Inc. radar:
08-07-2012 08:01 AM
Talk is that the crop has stablized, well maybe the soybeans have but once the corn is brown and the ears are hanging down, how can you till if it got worst over the last week?
I've heard stories of corn being combined by Kansas City, 50 bushel an acre with test wts of 48 lbs.
I've never seen 48 lbs test wt before.
I heard a story of a milo field that is burned up west of Lincoln Ne on I-80. That has to be dry for milo to go.
08-07-2012 08:15 AM
its not a story........and 50 is on the high end.........hopefully start next week.........thinking 30............have no idea on TW, kernals dont look too bad, but it was early April corn so it had a fighting chance...........although 2 inches of rain from May thru now doesn't give it much of a chance.........
there is a milo field off I-35 in NMO that failed too...........
not sure the soya crop is stabilized........many didn't get enough rain to do any good.........some that did it was already too late.......it surely helped some, but not near as widespread as you might think..........
08-07-2012 10:00 AM
There is a narrow band West and a little North of Lincoln, to a little ways West of Broken Bow, where it has been so dry, there are fields of corn where most of it didn't even sprout, and where trees are drying up. Everything was toast, even the 'hempweed' and sunflowers were drying up along the field edges. Next time I go that way, I'll try to remember my camera, they have swathed, and baled what corn grew, and have hardly more than one big round bale per acre, in places. Right next to it, you may see a well-irrigated field, that looks as good as it ever did, and next to that, an irrigated field with uneven gray spots in it, as well.
08-07-2012 02:29 PM
BE SURE AND CHECK FOR NITRATES . baling will not neturalize them. guy in next countn just killed 31 head feeding chopped corh .another guy turned his out in corn field all are dead in 1 day.
08-07-2012 04:42 PM