The transition from old crop to new crop is starting soon and the trade is reflecting a sooner than expected harvest. This week’s crop ratings reflected 41% corn dented vs. 22% last week and on the same pace as 41% last year. The US bean crop has 88% pods set compared to last week at 81% last year and ahead of the of 87% 5-year pace. Cash remains king and the local cash basis levels are reflecting immediate demand. The Sept/Dec corn spread has chopped around a bit recently and remains flat to start the week.
At the time of this writing, the grain markets are mixed with corn a .02-.03 higher and beans bull spreading with Sept beans up .08 and new crop Nov down .01. The bean spread is telling a big story on demand; however, we would recommend pricing out old crop beans sooner than later as commercials will be shifting over to new crop pricing and basis will be reflected off the new crop contracts soon with Sept. 1st right around the corner.
I wanted to take the opportunity to highlight our FOB program available to producers this fall. We know that everyone is feeling the staff shortage pinch this year, so if that’s you, please call your grain marketing specialist to arrange to have your grain picked up off the farm and hauled to an ALCIVIA location this fall – we are happy to help!