Crop Market Update – Aug 23, 2013

Cereal Grains & Soybeans (by: Brian Williams)

Crop scouts have been touring much of the corn belt this week and their findings have been a major driver in crop prices this week. The corn crop looks very good in much of Illinois and Indiana, while Iowa has quite a bit of variability. Despite the variability in Iowa, yields there are expected to be above the trend line. Soybeans are a different story. Scouts have been finding lower pod counts than a year ago in many areas, which is bringing some concern about yields at harvest. At the same time, soybean demand is remaining relatively strong providing a boost to prices over the last week. Despite the bearish information coming in about the corn crop, it appears that the corn market is following soybeans and has had a positive tone this week. Corn harvest is underway in Mississippi, with 6% of the crop harvested as of Sunday evening. This led to Mississippi cash prices moving lower in spite of higher futures prices.

Cotton (by: John Michael Riley)

Cotton prices were dealt blow this week and fell about 10 cents per pound.  The December futures price pushed above 93 cents last Friday, a contract high. On Tuesday, whispers of China releasing some of their massive reserves. Then, weakness in the general economy as well as a stronger U.S. dollar added pressure on Wednesday. Prices stabilized the remainder of the week.

Recap of Futures Markets:

Nearby Futures Contract This Friday Last Friday % Change
Corn $4.95 $4.73 4.65%
Soybeans $13.65 $12.83 6.39%
Cotton 84.08 93.32 -9.90%
Wheat $6.34 $6.31 0.48%
Rice $15.56 $15.19 2.44%
Source: Corn, soybean, wheat, and rice prices are from the CMEGroup; Cotton price is from the Intercontinental Exchange
Prices are $/bu for corn, soybeans and wheat, cents/pound for cotton, and $/cwt for rice

Recap of Mississippi Cash Prices:

Miss. Cash Quote This Friday Last Friday % Change
Corn $4.83 $5.07 -4.73%
Soybeans $13.57 $13.16 3.12%
Cotton 81.49 90.65 -10.10%
Wheat $6.01 $6.08 -1.15%
Note: Corn, soybeans, and wheat are averages from Greenville, Belzoni, Greenwood, and Indianola, MS ($/bu); Cotton is the South Delta base grade quote (cents/lb)
Source: All prices are from USDA, Ag Marketing Service

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