MarketEdge PM Comments
Sep 20, 2023
(Allison Ryan)
Grains closed up today- December corn was up 6, and December ’24 was up 4½. November beans were up 4½ and November ’24 was up 8. Wheat was also up 3-5.
Grains closed up today- December corn was up 6, and December ’24 was up 4½. November beans were up 4½ and November ’24 was up 8. Wheat was also up 3-5.
- The market experienced some short coverings today, pushing that Dec corn board back up over that 4.75 support level; the funds’ net short position for corn is the biggest we’ve seen since 2020 and in relation, their bean position is quite long.
- The Feds maintained the current interest rates this month, but indicated there could be another hike later this year.
- Lower river levels are having several impacts on this market- one being that we have a wider carry than we’ve had the last several years, and two, that we are concerned about basis dwindling as costs to move grains via river are increasing.
- Consider moving old crop or unsold new bushels sooner rather than later by at least locking in basis premiums before getting into the swing of harvest and running into river logistical issues.
- The extended 8-14 day forecast looks warmer and wetter for much of the Corn Belt
- Visit with your local merchandiser about your sell vs store strategy this fall for unsold bushels; don’t get so caught up with 2023 harvest that we forget to look at 2024 break evens and consider locking in a profit for next year.
- The Dow was up, crude was down, and the Dollar was slightly softer.