Corn steady to 1 lower
Beans steady to 1 higher
Corn and beans traded lower yesterday and were down overnight after Iran shot off more than a dozen missiles at US forces in Iraq, missing many of the targets and causing no casualties. Corn traders seem to be waiting for Friday’s report expecting yield to be trimmed back .5 to 1 bushels per acre and an acre reduction of 400,000 to 500,000 acres. If demand remains unchanged, that will bring ending stocks to around 1.750 billion bushels, down about 160 million bushels. But any negative changes in demand (ex: ethanol and/or exports) would send corn lower. We encourage having offers in place for knee jerk reactions in the first moments after the report.
Soybean traders seem to believe that the USDA will reduce production by 40-60 million bushels coming from lower yields and the estimated 200,000 acres of unharvested acres. Bears will point out that South America’s crop is ready to harvest, China is purchasing beans from there, and the dollar is becoming a haven, trading higher. A high dollar makes U.S. grain more expensive per bushel than another country with a weaker currency.
Fun Fact: Iowa has approximately 87,500 farms. More than 97 percent of those farms are owned by farm families, and more than 50% owned by women. Our annual Women in Ag event, Ventures, is slated for Saturday, February 15th in Ankeny. Delaney Howell, host of the Iowa Public Television show Market to Market will be our featured guest speaker. Please save the date, and stay tuned for more details.
Averaging Contract sign up is going on. Contact your local Grain Marketing Advisor for more information.