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Grain News - March 2016


By the time you get our newsletter in the mail, we should be seeing some mild March weather. Seems crazy to me that another planting season is less than a couple months out!

We now have both of our piles picked up and in good condition, and we are offering Free Price Later as space allows. Corn will be dried and shrunk to 14% moisture, and must be priced by August 15th or it will be priced at the closing price of that day.

At the time of writing this, corn has been stuck in about a 25 cent range since the New Year, and soybeans have stuck to just under a 40 cent range. A slightly bearish Feb 9th USDA Supply/Demand Report luckily didn’t push much to the downside and funds still hold a large short position. These are a couple bright spots in the overall commodity picture. However, the U.S. Dollar has remained fairly strong while competing export countries’ currencies have stayed weak. It also seems like South American crops are developing well at this time. I wish I had a better outlook, but at this time there’s nothing too promising in the near term.

Basis has backed off since the first of the year as the processor seems to have enough ownership in the nearby months. Some ethanol plants have quit buying corn through April and are only posting contract overrun bids. Luckily we have not seen that too close to our area. Soybean crush margins haven’t been too great, which isn’t helping the soybean processor bid either.

We are offering the EET Grain/Agronomy Loyalty Program again for the 2016 crop! If you aren’t aware of it, please ask Brooks or myself for more details. Summary below...

  • To qualify for a $0.10/bu bonus on corn on up to 175 bu/acre on eligible acres, you must purchase $100/Acre of fertilizer and chemical inputs from EET.
  • To qualify for a $0.10/bu bonus on soybeans on up to 60 bu/acre on eligible acres, you must purchase $30/Acre of herbicide and insecticide from EET.
  • This is not locking your crop into being sold at EET; if there is a better market that you want to sell into, you are able to do that.

Tom, Brooks and I will be bringing in a trader from FC Stone for a marketing meeting on Wednesday March 30th at 10:30 a.m. This will be a pre-report look at the Quarterly Grain Stocks and Prospective Plantings USDA reports that come out the next day, along with a look at livestock markets. Brooks will also give a quick Agronomy update for the upcoming season. We will provide lunch. Please let us know if you plan to attend so we have an idea of the number attending. Hope to see you there!

I hope everyone has a safe planting season with minimal delays or breakdowns. We could use it with prices like these.

Jory Bossuyt
Grain Merchandiser