Quiet trade in the markets again yesterday with the lack of fundamental news to give us direction. Favorable weather this week has pushed harvest along. A brief break this weekend with rains forecasted for late Saturday into Sunday before clearing off with cooler temperatures next week.
Private analyst Informa lowered its estimate of U.S. 2018 corn plantings to 90.460 million acres, from its 91.880 previous estimate. They raised U.S. 2018 soybean plantings to 90.347 million acres, up from last month 89.057 million acres.
Argentine farmers are expected to increase their corn planting by 5.2% in the 2017/18 growing year according to government data. This comes as the Argentine government encourages crop rotation by eliminating export controls and a 20% tax on corn exports. Some analysts believe the Argentine soy crop will drop by 7%.
This afternoons USDA Cattle on Feed Report is expected to show all US cattle on feed as of Oct. 1 at 10.732 million head, or 104.6% of last year, placements are seen at 108% of last year with marketing’s estimated at 102.6 % of last year. Basis levels continue to weaken across the Midwest as elevators and end users see a major space crunch on the horizon with this year’s crop. Producers would be well advised to lock in basis levels to guarantee themselves space to put this year’s crop away.
It’s time to take action! Producers should be proactively looking to make sales in the January thru May time slot. Cash levels are in the $3.40-3.50 range and very well could be the highest we see for these slots. 2016/17 carryout and 2017/18 production are going to keep levels low. I have listed below where this year’s crop would rank in terms of production and carryout. I have also shown reduced yields so you can see what little impact this will have on the overall numbers. You should also be looking to sell October/November of 2018 at current levels ($3.70).
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.