November 17, 2016

Justin Huebner, Grain Division Manager Grain Commentary

Corn

CBOT Prices Two Rivers Cash Bid Prices
Dec ‘16 342’0 +3’4 NC ‘16 294’0 +3’0
Mar ‘17 349’6 +3’2 Dec ‘16 306’0 +4’0
May ‘17 356’4 +3’0 Jan ‘17 309’0 +3’0
July ‘17 363’4 +3’2 Feb ‘17 311’0 +3’0

 

Soybeans

CBOT Prices Two Rivers Cash Bid Prices
Jan ‘17 989’4 +3’6 NC ‘16 917’0 +4’0
Mar ‘17 998’4 +4’0 Dec ‘16 919’0 +4’0
May ‘17 1007’2 +4’6 Jan ‘17 919’0 +4’0
July ‘17 1014’0 +5’4 Feb ‘17 922’0 +4’0

 

Corn and soybeans enjoyed a late rally to salvage a day which faced slightly lower prices most of it

Informa released today their updated guesses on 2017 acreage

They put corn acres @ 90.84 million acres vs 91.0 million in October

This estimate is 3.66 million acres smaller than the current USDA corn estimate

They reiterated that soybean acres would increase 5 million from 2016 to 88.61 mill vs 88.5 in October

All wheat acres were estimated at 47.265 million vs 48.9 in October.  This down about 3 mill from 2016

Current economics would argue in favor of this acreage shift towards soybeans

Much above normal temperatures and above normal rainfall projected for the next two weeks

This should help replenish ground moisture before a freeze going into Spring 2017

The US dollar is still staying strong, limiting any rally potential for grains right now

 

November 17, 2016