September 20, 2016

Justin Huebner, Grain Division Manager Grain Commentary

Corn

CBOT Prices Two Rivers Cash Bid Prices
Dec ‘16 340’4 +3’2 NC ‘16 288’0 -2’0
Mar ‘17 340’2 +3’2 Dec ‘16 306’0 +4’0
May ‘17 347’0 +3’2 Jan ‘17 315’0 +4’0
July ‘17 354’0 +2’6 Feb ‘17 318’0 +4’0

 

Soybeans

CBOT Prices Two Rivers Cash Bid Prices
Nov ‘16 989’6 +17’2 NC ‘16 915’0 +17’0
Jan ‘17 994’6 +17’0 Dec ‘16 925’0 +17’0
Mar ‘17 998’0 +16’4 Jan ‘17 930’0 +17’0
May ‘17 1002’6 +16’0 Feb ‘17 925’0 +17’0

 

Soybeans led the grain and oilseed markets higher today with impressive buying continuing

This rally is all the more impressive despite harvest pressuring increasing daily

Basis levels are weaker as processors and commercials don’t know what to do with all the bushels

The outside markets were mixed with the dollar and crude oil both higher

Soybeans were led higher by surging soyoil

World palm oil prices hit a 1-year high, which spilled over into other veg oils

The absence of sufficient palm oil supplies means beans will get crushed more for oil than meal

It’s becoming apparent that the veg oil S&D table is going to be tighter than previously forecasted

Grains also supported on forecasts showing moisture in the 6-10 day to slow harvest pace

Dryness in South America is slowing down planting progress there

Producers there finding financing for early planting tough, instead waiting to guarantee germination

September 20, 2016