Crop Market Update – Aug 30, 2013

Cereal Grains & Soybeans (by: Brian Williams)

Corn harvest is underway in Mississippi with 14% of the crop in as of Sunday and significant progress expected throughout this week. Crop conditions in Mississippi look good this week with 71% of the corn crop rated good or excellent and 73% of the soybean rated good or excellent. As a whole, the U.S. corn crop continues to develop more slowly than normal with 23% of the crop dented compared to a 5-yr average of 45%. The hot, dry weather this week has helped soybean prices to remain strong this week, but corn prices have declined all week from Monday’s highs. Three macroeconomic reports were released this week, providing a mixed view of the U.S. economy. Earlier in the week the GDP for the second quarter was revised up from 1.7% to 2.5%, which is bullish news for the markets. But, on Friday it was reported that U.S. personal income rose only 0.1% in the month of July. This was below expectations of around 0.2%. The consumer sentiment also has declined in the month of August to 82.1. That figure is down from July’s estimate of 85.1, but well above expectations of 80.5.

Cotton (by: John Michael Riley)

Cotton prices were mostly steady this week following last week’s sharp drop off, but did finish slightly lower. The mostly bearish economic news that was released Friday (mentioned above) pressured cotton prices early on Friday.

Nearby Futures Prices:

Nearby Futures Contract This Friday Last Friday % Change
Corn $4.95 $4.95 0.00%
Soybeans $14.24 $13.65 4.32%
Cotton 83.49 84.08 -0.70%
Wheat $6.43 $6.34 1.46%
Rice $15.81 $15.56 1.57%
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


Mississippi Reported Cash Prices:

Miss. Cash Quote This Friday Last Friday % Change
Corn $4.55 $4.68 -2.78%
Soybeans $14.02 $13.81 1.52%
Cotton 81.45 81.49 -0.05%
Wheat $6.00 $5.91 1.52%
Note: Corn, soybeans, and wheat are averages from Greenville, Belzoni, Greenwood, and Indianola, MS ($/bu); Cotton is the South Delta base grade quote (cents/lb)
Source: All prices are from USDA, Ag Marketing Service

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