Crop Market Update: Week Ending Jun 21, 2013


Monday’s crop progress report had the U.S. corn crop rated at 63% good to excellent and the Mississippi corn crop at 55% good to excellent. It is interesting to note that at the same time last year, the U.S. corn crop was also rated at 63% good to excellent. Soybeans are still behind schedule with planting progress currently at 85% for the U.S. crop compared to a 5 year averages 90%. The Mississippi soybean crop looks rather good with 63% of the crop rated in good to excellent condition. July soybean futures closed down 4 cents on the day to finish off a tough week that saw a decline of 23 cents. July corn finished down 11 cents at $6.61 to close the week 6 cents higher. Wheat finished the week 18 cents higher, but closed the day 2 cents lower at $6.98. Wheat harvest is slowly progressing with 11% of the U.S. wheat crop harvested and 56% of the Mississippi crop harvested. That is compared to a 5-year average of 25% and 90%, respectively. The Mississippi wheat condition is better than that the U.S. wheat crop with 65% being rated good to excellent compared to 54% nationally. While most of the crops began the week strong, commodity prices took a hit across the board late in the week with talks of cutting back on the amount of bonds that the Federal Reserve is buying each month. It looks as concerns may be easing a bit with the stock market trading slightly higher late Friday afternoon.

Small Grains Prices

June 14, 2013

June 21, 2013

Change

Nearby Corn Futures

$6.55

$6.61

+$0.06

Mississippi Corn*

$6.90

$7.08

+$0.18

Nearby Soybeans Futures

$15.16

$14.93

-$0.23

Mississippi Soybeans*

$15.25

$15.06

-$0.19

Nearby Chicago Wheat Futures

$6.80

$6.98

+$0.18

Mississippi Wheat*

$6.77

$6.82

+$0.05

Nearby Rice Futures

$16.55 ½

$15.91

-$0.645

*Mississippi prices are average June 20, 2013 prices from Greeneville, Belzoni, Greenwood, and Indianola.

Cotton moved sharply lower this week. The general (i.e., macro) economy took a hit following the Fed’s bond purchasing announcement. Cotton prices have been, and will continue to be, more responsive to macro economic news than other commodities simply due to the nature of the end product (clothing, etc versus food or fuel).

Cotton Prices (cents/pound)

June 14, 2013

June 21, 2013

Change

July Cotton Futures

91.29

85.15

-6.14

December Cotton Futures

89.44

84.64

-4.80

South Delta Cotton Quote

89.04

82.68

-6.36

Note: Futures prices are from ICE and cash quote is from USDA, AMS

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