Crop Market Update – Sept 6, 2013

Cereal Grains & Soybeans (by: Brian Williams)

It has been a tough week for corn markets again this week. Much of the downward pressure in the corn markets is because we are expecting a record corn crop this fall. Harvest is also in full gear in much of the South, with 34% of Mississippi’s corn harvest already complete. This is behind the average pace of 64%, but with the warm, relatively dry week throughout much of the state we should see significant progress reported next week. Soybean prices have held steady much of the week, closing ten cents higher than a week ago. While there is still much uncertainty surrounding the soybean crop, some analysts believe that the U.S. soybean crop will be much smaller than the USDA’s current projection. The U.S. crop is currently rated at 54% good or excellent while Mississippi is rated at 74% good or excellent. The U.S. Labor Department released a report Friday detailing the U.S. unemployment situation. The unemployment rate decreased slightly from 7.4% to 7.3% in the month of August, however the decline was not all good news. The 169,000 jobs added was less than the expected 175,000 and the percentage of the population either employed or looking for work dropped to a 35 year low of 63.2%.

Cotton (by: John Michael Riley)

Cotton futures continued to slide lower this week. Outside markets dominated trading early in the week and fears of fall out from the conflict in Syria had traders jittery. Prices improved Friday which helped offset the carnage. The jobs report that Brian mentions above at first was viewed negatively and pulled down prices. Soon after the start of trading, though, markets turned and stayed in positive territory the remainder of the day. Many expect the Fed to step in and inject more cash to help aid the ongoing recovery effort. This was the primary reason given for the market’s change of pace on Friday.

Friday’s Futures Prices:

Futures Quotes (Contract) This Friday Last Friday % Change
Corn (Dec 2013) $4.68 $4.82 -2.85%
Soybeans (Nov 2013) $13.68 $13.58 0.76%
Cotton (Dec 2013) 83.49 84.08 -0.70%
Wheat (Dec 2013) $6.48 $6.54 -0.96%
Rice (Sep 2013) $15.45 $15.81 -2.25%
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

Nearest Mississippi Cash Prices:

Miss. Cash Quote This Friday Last Friday % Change
Corn $4.28 $4.55 -5.93%
Soybeans $13.91 $14.02 -0.80%
Cotton 80.99 81.45 -0.56%
Note: Corn, soybeans, and wheat are averages from Greenville, Belzoni, Greenwood, and Indianola, MS ($/bu); Cotton is the South Delta base grade quote (cents/lb)
Source: All prices are from USDA, Ag Marketing Service

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