Grain Notes 9/17/21 PM Comments  

(Mike Moellenbeck)

The corn and soybean markets were all lower today ahead of a weekend that should see corn and soybean harvest pick up.  Beans took a big hit despite another sale to China, wiping out this week’s gains.  Corn was down 2 cents and beans were down 7-12 cents.  For the week December corn was up 9 ¾ and November beans were down 2 ½.
  • As the harvest activity picks up, the Midwest corn basis has dropped sharply. A drop of more than $1.00 started to take place with Illinois processors last week and Iowa processors faded sharply this week.  Local basis levels for nearby delivery have moved from +120 to 0 during the past 10 days.
  • Expectations are that corn harvest will be 10-12% complete in Monday afternoon's report.
  • Illinois corn yields turning out mixed returns versus expectations. The USDA forecasts a yield in Illinois that is record by 4 bushels/acre this year. Iowa yields coming in as expected or better than expected. The USDA is forecasting an Iowa corn yield 5 bushels/acre under the record.
  • The rumor that circulated today was the EPA was coming out with an 11th hour press release regarding soy-diesel and the renewable volume obligation that was interpreted as being negative to soybean oil. Soybean oil sold off on the news and soybean prices followed.  Soybean meal also down $2/ton.
  • The CHS export facility at the gulf indicates it now has power and hopes to be loading ships by the end of next week.  A few other elevators are now expected to stay down, even with a return of power, for another 60 days due to damage. Between sunken and damaged barges, there is probably up to 6 million bushels of grain that is entirely lost. Damaged barges need to be repaired before being sent up river which adds to the concern of barge availability as harvest picks up.