Crop prices on the defensive. Ohio Country Journal – Doug Tenney; October 1st, 2014
Harvest is in full swing across Ohio and the Midwest. Producers in central Ohio were greeted with a dry September that pushed crops to maturity. Corn yields have continued to be a surprise with gusts above 200 bushels per acre fairly common. Early in August many producers were expecting only average yields. While yields may not be record breaking, in many cases corn yields will be above average. Central Ohio had a number of elevators with a basis push for early delivery corn. Many of them cut their drying charges in half. Numerous grain facilities also had strong basis levels for early delivery soybeans. Basis levels of $2 to $4 over the November prices were fairly common the second week of September. Meal demand was strong, prompting the extremely high and yet uncommon soybean basis levels. Soybean yields look to be high as well with early reports of 55 to 65 bushels per acre being very common.
Prices for corn, soybeans, and wheat continued to be on the defensive again during September. All three had new contract lows established multiple times last month. Producers continue to be dismayed at the severity of those price declines, especially compared to prices seen during the planting season. December CBOT corn reached $5.14 in early May as it rallied following the price declines of last fall’s harvest. Yet by late September, December CBOT corn had reached $3.23.
This summer’s perfect weather without severe stresses in huge parts of the Corn Belt has produced phenomenal corn yields. Many farms in Illinois and Iowa will have new record high corn yields this fall. It is astonishing to see so many corn yields above 200 bushels across the nation. Corn harvest in the south started with super yields for both corn and soybeans. Numerous reports in the south and southeast had very common soybean yields of 75 to 85 bushels.
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