November 29, 2016

Corn

CBOT Prices Two Rivers Cash Bid Prices
Dec ‘16 336’6 -11’6 NC ‘16 295’0 -12’0
Mar ‘17 349’0 -9’2 Dec ‘16 302’0 -11’0
May ‘17 356’4 -9’0 Jan ‘17 309’0 -11’0
July ‘17 364’0 -9’2 Feb ‘17 311’0 -9’0

 

Soybeans

CBOT Prices Two Rivers Cash Bid Prices
Jan ‘17 1042’4 -13’4 NC ‘16 972’0 -13’0
Mar ‘17 1051’0 -13’4 Dec ‘16 972’0 -13’0
May ‘17 1057’2 -13’2 Jan ‘17 972’0 -13’0
July ‘17 1061’6 -13’2 Feb ‘17 977’0 -13’0

 

Corn and beans came under pressure today with crude oil dropping and technical resistance overhead

Crude oil was lower on reduced optimism over an OPEC deal that would cut crude oil production

December corn first notice day is tomorrow and Dec was down hard vs deferred months

Apparently there are some that expected to see some deliveries to be initiated

USDA baseline projections for 2017 were released today and showed corn acres losing 4.5 mln vs 2016

Soybean acres were only expected to increase 1.8 million vs 2016

Wheat acres were projected to only be down 1.7 million acres despite more favorable crop options

Keep in mind these projections were assembled nearly a month ago; different price relationships then

Typical soy/corn ratio is 2.3:1, but the bean rally has led to a ratio tonight of 2.7:1

This market is making bean plantings much more appealing during a time when producers plan for ‘17

 

November 29, 2016