It appears that weaker markets are in store to end the month. October offered some hope as we rallied 22 cents in the first 15 days only to fall 15 cents in the last 15 days. With heavy harvest activity and little to no news on the political side the markets will remain range bound. I would expect both corn and soybeans to trade lower today as traders pocket some money at month end. The good news is that the funds started the month short 125k corn contracts and are now long 19k contracts.
Ag Secretary Perdue confirmed that a second round of payments will be coming to farmers, most likely in the same amount as the first. While this is not very lucrative for corn producers who receive .005/bu in the first payment for bushels produced this year, it is very good for soybean producers who received .825/bu in the first payment. The $1.65 MFP payment would bump most cash prices to well over $9/bu.
I would advise producers looking for space this fall to lock in basis contracts vs. the CH which would give you a couple months for the markets to rally back to better levels. This is a great way to give yourself time to price while avoiding high storage charges that are being charged by warehouses. Give us a call for more details.
We will be closing our scale at 3:00 pm today to help make the streets of Cambria safer for Trick or Treating. We will resume normal 7-7 hours on Thursday.
Have a Safe Day!