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Grain News - June 2016

Wow - what a crazy couple months in the soybean market. I’m not sure who in the industry saw $10.70+ July futures after such stagnant trading below the $9.25 level since late last summer, but it’s given farmers some good opportunity to get close to $10.00 cash on both old and new crop bushels. We can thank the funds for fresh money being injected into the market and leading us upwards.

The May 10th USDA report surprised us by trimming the 15/16 carryout from 445 million bushels down to 400 million bushels. This is a large reduction, but still seems to be a comfortable level as evidenced by the weakness in nearby and summer basis. 16/17 carryout stands at 305 million bushels, a number that could easily be trimmed with a yield reduction below the current 46.7 BPA predicted. World carryout was also reduced, caused by continued good demand and some crop troubles down in South America.

Corn hasn’t seen quite as much volatility as soybeans, but we have been buying small amounts of New Crop around $3.40. Not quite the comfortable levels you need to cash flow, so let’s hope for some favorable levels to get bushels priced. It seems like there’s still plenty of corn tucked in the bin at home, so if I can help you move and market some old crop in the upcoming months, give me a call.

This year we’ll be accepting wheat out of the field. Check our website for the cash bids and the 2016 Wheat Policy, which is located under the Grain tab, then click Grain Policies. Since wheat discounts at the end user are always changing depending on how the crop turns out, they aren’t as clear-cut as corn & soybean discounts, but I will try to post them definitively closer to harvest. We’ll be sending samples off to state graders, so there will be a delay before we are able to pay for your wheat this year. Lastly, due to limited space and time before corn & soybean harvest, we will not have a storage or price later policy so all wheat will need to be forward contracted or will be sold at the closing price on the day it’s delivered.

Just a few reminders for you... Price later must be sold by July 31st, or it will be priced at the closing price of that day. Free Price Later must be priced by August 15th, or it will be priced at the closing price of that day.

I hope everyone had a safe and efficient planting season, and we look forward to a great growing season. Hope to see you soon in the office, around town, or in August at the Wood Lake Fair!

Jory Bossuyt
Grain Merchandiser