Currently corn is up 2 and soybeans are up 4 on carryover from yesterday’s trade strength. Traders are adding premium to the market due to dryness in parts of Brazil and flooding in northern Argentina. Rain is expected for the dry areas of Brazil over the weekend and dry for next week. This dryness could have a big impact on the second crop corn plantings.
The USDA will announce their decision today on whether the January 11 final production, Dec 1 grain stocks and winter wheat seedings will be released on the 11th at it regular time or if it will be delayed due to the government shutdown.
Producers with old crop corn to move before spring planting should be paying close attention to the markets and looking to lock in cash or basis contracts. Look to make sales before grain needs to be sold in March to pay bills for spring planting and basis levels widen out. Any potential rally in corn futures will also put pressure on basis levels.
Didion is currently offering a contract where you can sell cash corn for February 2019 delivery in the $3.65-3.70 range with a potential contract for December 2019 delivery at $4.00. Call for details.
Have a Safe Day!