S:GROWERSEDGE.MOBI M:CORN MAR2 644.5+1.5s
BEANS MAR2 1232.5+15.5s
LCAT FEB2 123.2-1.95
LHOG FEB2 87.5-0.075
Friday, February 3, 2012
Hertz Farmland Auction @ 10am- LIVE COVERAGE!
CHECK BACK OFTEN OVER THE NEXT HOUR FOR LIVE COVERAGE OF THIS FARM SALE!
February 3, 2012 @ 10am in Vinton, IA
Morning Coffee
Morning Coffee 2-3-12.wmv: http://t.co/AvW2QXtHvia @youtube #corn -- allendale_Paul (@allendale_Paul)
Thursday, February 2, 2012
Groundhog Findings
BREAKING: A terrifying shadow = 6 more weeks of winter! No complaining. We haven’t even had winter yet. -- KWWLSchnack (@KWWLSchnack)
Wednesday, February 1, 2012
Weather Update
An update on the potential storm for the weekend. http://t.co/FPK88CmM -- KWWLSchnack (@KWWLSchnack)
Opening Calls
CORN: Corn futures are called 7 to 9 cents higher on the open, Brugler Marketing said.
Conflicting stories about a single Brazilian state reinstating a 25% intrastate tariff on ethanol confused a lot of folks yesterday. The U.S. exported over 1/3 of its total ethanol exports to Brazil in 2011, so the issue is of interest, Brugler Marketing said. Shipments to Brazil were already expected to slow down sharply after March or April when Brazilian sugarcane availability ramps up seasonally.
SOYBEANS: Soybean futures are expected to trade 8 to 10 higher, Brugler Marketing said.
US biodiesel production surged to 160 million gallons in December, putting the annual total near 1.1 billion. Oil World cut its estimates of soybean crops in Brazil and Argentina for the 2012 crop because of the La Nina drought, Brugler Marketing said. Oil World predicts global needs will shift to the U.S. on crop shortfalls in South America.
As seen on marketwatchonline.com
Conflicting stories about a single Brazilian state reinstating a 25% intrastate tariff on ethanol confused a lot of folks yesterday. The U.S. exported over 1/3 of its total ethanol exports to Brazil in 2011, so the issue is of interest, Brugler Marketing said. Shipments to Brazil were already expected to slow down sharply after March or April when Brazilian sugarcane availability ramps up seasonally.
SOYBEANS: Soybean futures are expected to trade 8 to 10 higher, Brugler Marketing said.
US biodiesel production surged to 160 million gallons in December, putting the annual total near 1.1 billion. Oil World cut its estimates of soybean crops in Brazil and Argentina for the 2012 crop because of the La Nina drought, Brugler Marketing said. Oil World predicts global needs will shift to the U.S. on crop shortfalls in South America.
As seen on marketwatchonline.com
Tuesday, January 31, 2012
Winter Expo Entries & IJBBA On-Line Stalling Auction - DEADLINE FEBRUARY 1!
ATTENTION – ATTENTION – ATTENTION – ATTENTION - ATTENTION
IJBBA OnLine Stalling Auction:
Bidding is still taking place for the IJBBA Exhibitors For Education On-Line Stalling Sale. Don't miss out on this great opportunity to support the Exhibitors for Education Fund and get a great spot in the barn. Bid today at http://edjeauctions.com/auction.php?aucid=51.
The biding ends tomorrow – February 1st!
Also remember that IJBBA Winter Expo Entries are due postmarked no later than February 1st also!!
You May Enter Online at: http://www.showcattlepage.com/ijbba/index.php#
Please contact Jenny Studer at 319-530-3056 or Mindy Campfield at 515-966-0075 if you have any questions.
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Twitter Feed @newscoffeeshop
Contrary to popular belief, #bacon does not actually come from heaven. Check out where bacon comes from http://t.co/nYSr2G6l -- plowwife (@plowwife)
Twitter Feed @newscoffeeshop
@chrisbarron24 sharing his Multi Generational Growth Model at #ttp12 http://t.co/d2bLPduV -- jjbcattleco (@jjbcattleco)
Cornbelt drought appears to spread
The Iowa-Minnesota situation even has experts mentioning one very scary year from the past â 1988. The Register quotes Iowa Stateâ s Dr. Elwyn Taylor pointing out that the weather conditions this year are nearly identical to those of 1988 when the last significant drought hit Iowa and other major corn producing areas. Taylor does point out they are happening earlier this year so there is more time to get rainfall before critical summer periods arrive.
Even the mention of 1988 makes market watchers cringe, though. Iowa's average corn yield in 1988 was 84 bushels per acre, down from 130 in 1987 and 135 in 1986 and 24% below the average of the prior 10 years. Minnesota's was 74 bushels per acre, down from 127 in â 87 and 122 in â 86. The national yield in 1988 was 84.6 bushels per acre, over 25 bushels lower than the year before and 26% lower than the 1960-2010 trend yield for 1988 of 113.9 bushels per acre.
The U.S. average farm price for corn went from $1.94/bu. in â 87-â 88 all the way to $2.54 in â 88-â 89 but we must remember that carryout stocks in the fall of 1987 were 4.259 billion bushels. This year they are projected to be 846 million, one-fifth as large. Taylor believes the culprit is La Nina, the cooling of Pacific Ocean waters west of South America, that began in 2010. The early stages of La Nina drove wetter-than-normal conditions in â 10 and â 11 but the latter stages usually cause dry conditions in the Midwest. If La Nina remains through the spring, Taylor estimates that there is only a 1 in 20 chance of getting enough spring rainfall in Iowa.
So what does this mean? Maybe nothing. Spring rains could come and allay all of this concern and fear. The Cornbelt, though, has not seen significant drought in January since 2006 when conditions in a swath of southern Iowa and northern Illinois were classified as moderate to severe. We â and the markets â are accustomed to entering planting season with PLENTY of subsoil moisture and thus some ability for the crop to survive short dry spells.
Not so this year for the areas noted here. We also know that today's corn varieties are more drought tolerant and will not likely fall 26% short of trend yields even if 1988 conditions develop. But any degree of crop shortage is scary when one begins year with very tight corn stocks.
As seen on marketwatchonline.com
Even the mention of 1988 makes market watchers cringe, though. Iowa's average corn yield in 1988 was 84 bushels per acre, down from 130 in 1987 and 135 in 1986 and 24% below the average of the prior 10 years. Minnesota's was 74 bushels per acre, down from 127 in â 87 and 122 in â 86. The national yield in 1988 was 84.6 bushels per acre, over 25 bushels lower than the year before and 26% lower than the 1960-2010 trend yield for 1988 of 113.9 bushels per acre.
The U.S. average farm price for corn went from $1.94/bu. in â 87-â 88 all the way to $2.54 in â 88-â 89 but we must remember that carryout stocks in the fall of 1987 were 4.259 billion bushels. This year they are projected to be 846 million, one-fifth as large. Taylor believes the culprit is La Nina, the cooling of Pacific Ocean waters west of South America, that began in 2010. The early stages of La Nina drove wetter-than-normal conditions in â 10 and â 11 but the latter stages usually cause dry conditions in the Midwest. If La Nina remains through the spring, Taylor estimates that there is only a 1 in 20 chance of getting enough spring rainfall in Iowa.
So what does this mean? Maybe nothing. Spring rains could come and allay all of this concern and fear. The Cornbelt, though, has not seen significant drought in January since 2006 when conditions in a swath of southern Iowa and northern Illinois were classified as moderate to severe. We â and the markets â are accustomed to entering planting season with PLENTY of subsoil moisture and thus some ability for the crop to survive short dry spells.
Not so this year for the areas noted here. We also know that today's corn varieties are more drought tolerant and will not likely fall 26% short of trend yields even if 1988 conditions develop. But any degree of crop shortage is scary when one begins year with very tight corn stocks.
As seen on marketwatchonline.com
Positive outlook today
CORN: Corn futures are called 5 to 7 cents higher, Brugler Marketing said Tuesday morning.
Outside market forces are positive and fund traders appear more willing buyers of grain in recent days. Cash traders indicate that Japan has bought near 330,000 tonnes of corn from Argentina and has also bought 1.5 million tonnes of European corn. There is also talk that Japan seeks 1 million tonnes of US corn. This has traders a bit nervous that higher US prices could slow export demand.
SOYBEANS: Soybean futures are expected to open the day 3 to 5 cents higher, Brugler Marketing said.
China futures closed down 0.5% this morning due to weakness in palm oil and talk of improving crops in South America. Malaysia palm oil futures closed down 0.1%. Asian equity markets were higher this morning, but stocks in Australia and New Zealand were a touch lower. European equity markets were higher and seemed to be poised to finish up a rather positive month of trade, the CME said.
As seen on marketwatchonline.com
Outside market forces are positive and fund traders appear more willing buyers of grain in recent days. Cash traders indicate that Japan has bought near 330,000 tonnes of corn from Argentina and has also bought 1.5 million tonnes of European corn. There is also talk that Japan seeks 1 million tonnes of US corn. This has traders a bit nervous that higher US prices could slow export demand.
SOYBEANS: Soybean futures are expected to open the day 3 to 5 cents higher, Brugler Marketing said.
China futures closed down 0.5% this morning due to weakness in palm oil and talk of improving crops in South America. Malaysia palm oil futures closed down 0.1%. Asian equity markets were higher this morning, but stocks in Australia and New Zealand were a touch lower. European equity markets were higher and seemed to be poised to finish up a rather positive month of trade, the CME said.
As seen on marketwatchonline.com
$1/bu. Profits Possible for 2012 Corn
John Pocock, Corn & Soybean Digest
The corn profit picture for 2012 isn't quite as rosy as 2011, but the marketplace could still offer very lucrative returns for growing corn this season, says Chad Hart, Iowa State University agricultural economist.
"In Iowa, we’re projecting season-average prices to range between $5.30 and $5.40/bu., and we’re projecting inputs costs to be about $4.40/bu.," says Hart. "So, if that holds true, the market in Iowa will be offering 90¢-$1/bu. in profits to grow corn for 2012. Returns from growing corn in Iowa last year have averaged about $1.60/bu., but that corn is still being sold."
Historically, anything over zero is a good return for corn, because government subsidies have typically provided adequate profit incentive, even when the market has not, adds Hart. He notes that from 1972 to 2008, the return on a bushel of corn averaged -7¢/bu.
The corn profit picture for 2012 isn't quite as rosy as 2011, but the marketplace could still offer very lucrative returns for growing corn this season, says Chad Hart, Iowa State University agricultural economist.
"In Iowa, we’re projecting season-average prices to range between $5.30 and $5.40/bu., and we’re projecting inputs costs to be about $4.40/bu.," says Hart. "So, if that holds true, the market in Iowa will be offering 90¢-$1/bu. in profits to grow corn for 2012. Returns from growing corn in Iowa last year have averaged about $1.60/bu., but that corn is still being sold."
Historically, anything over zero is a good return for corn, because government subsidies have typically provided adequate profit incentive, even when the market has not, adds Hart. He notes that from 1972 to 2008, the return on a bushel of corn averaged -7¢/bu.
Monday, January 30, 2012
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RT @indianagrainco: 30 yr bonds up up up new highs -- MarketToMarket (@MarketToMarket)
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