Morning Commentary

Dec corn up 2 at $3.7225

Nov beans up 3 ¼ at $8.7625

The DOW is up

USD is stronger

Crude oil up $.62 at $56.30

Good morning,

Crazy “variability” continues to be the theme… Crop tour participants across the U.S. are all reporting the same thing, crops that are at wildly different stages of growth, even plants within the same field are at different stages of maturation. The Pro Farmer Crop Tour reported yield estimates and findings last night for Western Iowa and Illinois. The Western Iowa data was completed for Districts 1,4, and 7, the remaining portions of Iowa will be completed today. From what I can gather, District 1 was a bit worse than last year, but District 4 and 7 were a bit better than last year. To this point, the tour is showing Iowa overall a bit better. Illinois is a bird of an entirely different color. The tour reported an average corn yield of 171.17 bushels per acre vs. 192.63 reported last year.

Soybean  prices continue to consolidate. I’m not sure if that’s good or bad. The Pro Farmer Crop Tour posted results for a portion of Iowa and all of Illinois. The tour reported results in Iowa for Districts 1,4 and 7. Interestingly, opposite the corn results, District 4 and 7 showed fewer pod counts than last year, while District 1 showed slightly improved pod counts. All of Iowa’s results are scheduled to be released today. The tour through Illinois produced an average pod-count of 997.68 vs. 1328.91 average last year. 

Iowa Congresswoman Cindy Axne and others are calling for a federal investigation into the waiver process that allows oil refineries to bypass the regulations for mixing renewable fuels with their products. Axne says the EPA’s recent granting of 31 Renewable Fuel Standard waivers to small refineries puts the total at “85 handouts to the oil sector.” “What that’s done is destroy over four billion gallons of biofuel demand–which means that’s a market for more than one-point-five billion bushels of American corn,” Axne says. Axne says the waivers are also having an adverse effect on the biofuel industry, itself. Officials with POET announced Tuesday that it would idle a 92-million-gallon ethanol plant in Cloverdale, Indiana as a result of the waivers.

The U.S. Agriculture Department said on Wednesday it had pulled all staff from an annual crop tour after an employee was threatened, and three sources said the threat came over the phone from an angry farmer. Farmers have complained this month that a government crop report did not reflect damage from historic flooding this spring. They are also frustrated over unsold crops due to the trade war with China, falling farm income, and tighter credit conditions. Lance Honig, crops chief at the USDA’s National Agricultural Statistics Service, and other USDA staffers left the privately-run Pro Farmer tour and police will be present on upcoming stops of the trip, which ends on Thursday. (Reuters)


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