The selling continues!! Corn is down 4 and soybeans are down 8 as last Friday’s WASDE reports continue to weigh on the markets. The report that was a copulation of producer and field sample surveys forecasted record yields in both corn and soybeans. Corn came in at 178.4 bpa and soybeans at 51.6 bpa. Higher production in both resulted in greater ending stocks, particularly soybeans where the stocks to use ratio jumped to 18.44%. Corn stocks to use ratio is currently projected at 11%. The current price of corn on the CBOT is the lowest price we have seen with the stocks to use ratio this low since the inception of the RFSII mandate. The 178.4 bpa appears to be strongly driven by higher population counts combined with kernel length counts. The remainder of the season will prove whether the USDA’s assumptions of test weight support the 178 number. It was interesting to note that the majority of the increase in yield came from less than half of the major corn producing states. Crop problems in some states were more than offset by the following states:
Despite the record yield projections in corn, the market in my opinion is still undervalued considering the stocks to use ratio. Historically a stocks to use ratio of 10-12% equates to a cbot price of $4. We are currently trading at $3.70 for the CZ18 contract. Is this underpriced due to tariff issues, or will we see the market come back to the $4 level without tariff resolutions is the question. I believe that without some tariff resolution, we will not see $4 on the CBOT prior to harvest.
As we approach the end of another growing season a lot of producers are working to clean out their grain bins in preparation for the next crop to come in. It is very important to take your time and follow some simple safety procedures when working in and around your grain bins. Today's large grain augers can transfer from two to four times as much grain as augers of the past. Your body can become completely submerged in about 8 seconds, leaving you helpless.
Crusted, spoiled and wet grain associated with wet harvest (as well as remaining grain from last year’s wetter harvest) can also contribute to grain bin suffocation. As grain is removed from the bin it can bridge and form a cavity under the crusted surface. There's little chance of survival if you are walking on the surface when the crust breaks and you plunge into flowing or hot grain.
The following are reminders and safety measures to practice while working around grain:
Keep children out of grain bins, beds and wagons at all times. Grain flow can cover them before anyone realizes what is happening.
Lock out the control circuit before entering a bin, whether or not grain is flowing. Be especially careful around automatic unloading equipment.
Before entering a bin, its necessary to evaluate the bins air quality. At a minimum there should be 19.5% oxygen inside the bin. Grain bin dust affects people in different ways, including difficulty breathing. Wearing a mask, equipped with a high efficiency filter will protect you from dust and mold.
Have three people involved when you enter a grain bin, and enter with a rope and safety harness. In the case of an accident, it will take two people to lift you out using the equipment.
Don’t count on someone outside the bin to hear your shouted instructions. Equipment noise may block out your calls for help.
If you become trapped in a bin of flowing grain with nothing to hold onto but you are still able to walk, stay near the outside wall. Keep walking until the bin is empty or grain flow stops. If you are covered by flowing grain, cup your hands over your mouth, and take short breaths until help arrives.
If another person becomes submerged in grain, assume he is alive and begin rescue operations immediately. Turn on the fan to move air into the bin. Cut large holes around the bin, approximately 5 ft. up from the base, to empty grain. (If you cut too many holes, the bin may collapse on you.) Use the front-end loader of a tractor, an abrasive saw or an air chisel. A cutting torch is a last resort – it could cause a fire or an explosion from dust and fumigant residue.
Never attempt a rescue by going into the grain yourself. Call 911. Your local emergency team has the training and equipment to do the job safely.
ACH - Payment Form
If you are interested in ACH, please completely fill out the attached form and return it to Didion. Some financial institutions charge for this service.(You will have to check with yours to see if there is a fee) If you have a lien on your grain, we will not be able to pay you via ACH. Click Here to view form.
LET US DO THE TRUCKING FOR YOU!
Didion Milling has trucks ready to serve you. We have hopper bottom and dump trailers of various sizes to fit your needs. We offer on-farm pickup throughout the year. Hourly rates are available should you need extra time to fill a trailer. Contact Garry or Mitch for more information on our trucking services.