December corn gained 3/4 today, closing $3.59 1/4, which is up 18 3/4 from last Friday.
November soybeans gained 8 1/2 today, to finish at $9.50 1/2, up 45 3/4 week-on-week. January beans added 8 3/4 today and finished at $9.56 1/4, gaining 45 for the week.
This week, it’s really hard to find much to be bearish about. As you see above, corn is up double digits, and soybeans are up more than 40 cents this week. Many in the industry expect further issues and deterioration to the crop in next week’s crop ratings. On top of that, we continue to see New Crop export sales being put on in a big way, for both soybeans and corn. The Chinese and that other big buying group “unknown” bought more of both this week. The dollar continues to be weak. Crude Oil and Gasoline continue to inch a little higher every week. Natural Gas prices have gained more than 30% in 2 months. Part of that is due to Hurricane Season in the U.S. Gulf.
The other day, someone remarked on how unusual all of this is for the month of August. At the beginning of the month, the bears were firmly in charge, asking “just how BIG is this crop going to be?”. And now, at the end of August, the Bulls are asking the same thing “just how big IS this crop going to be?”
For more information about items impacting the price of corn and soybeans, tune in to our FREE weekly podcast, the Bull Bear Banter. This week, we also have a bonus segment from Eric Lerdal, Director of Procurement for Landus Agronomy. Eric will be discussing agronomic practices for downed corn. That podcast can be found here: https://www.landuscooperative.com/news-events/podcast
What to watch for/Upcoming Events:
- Next Wednesday, Landus will be hosting 2 webinars to discuss the 2020 Crop Tour. You’ll need to register on our website to attend.
- Also, next week, our guest on the podcast will be Dr. Charles Hurburgh. Charlie is the professor in charge of the Grain Quality Lab. He will be discussing the ongoing impacts of not only the Derecho but also the Iowa drought that has been growing in intensity.
- Labor Day is just a couple of weeks away, September 7th.
- The next USDA WASDE report is due in 2 weeks, on Friday, Sept 11th.
This week, I was able to get out and drive through a big part of the Derecho area. I knew it was bad, as within a mile of where I live there are several flattened fields, but it was still somewhat depressing to see so much devastation in so many areas. I am still amazed that I haven’t heard of any deaths from this storm, let alone many serious injuries. Maybe because it was during the day, and people saw it coming and took shelter? I don’t know, but driving through these areas made me even more thankful for that, at least. I know there are many of you that are hurting from this. I know this is going to be a long process for many, many people. Seeing grain bins crumpled like pieces of paper, and mile after mile of corn flattened to the ground is just hard to fathom. As well as the indiscriminate destruction. In some areas, the north side of the road looks like it might be able to be harvested, and perhaps 50% or more of the plants are still alive, while on the south side of the road in the same place, the corn was flattened. In other areas, it was just the opposite. Topography played a big role as well, with some areas on a piece of ground sloping down from the north and/or west looking unscathed, but the field at the bottom of the hill on a flat piece of ground just gone. And certainly, fields on the south side of a tree line or windbreak appear to be in good shape. Thankfulness for the safety of all involved is about all I could think about. That and the utter force of destruction from the wind. The worst places I have seen so far are just north of Dawson, and north of Woodward between Highways 169 and 17. Our thoughts are with you all. Please contact your local Landus representative if there is anything we can assist with.