Morning Commentary

Sept corn down 2 ½ at $3.5725

Nov beans down 6 at $8.80

The DOW is down

USD is weaker

Crude oil up $1.18 at $67.02

Good morning,

Corn bulls are struggling to find any fresh new headlines. The best we can find is some crop deterioration in parts of the Dakota’s, Colorado and Minnesota. There’s also pockets of concern or variability in parts of Wisconsin, Iowa, Kansas and of course Missouri. The funds continue to hold a slightly bearish tilt, primarily on lack of enthusiasm in the global macro space and no real U.S. weather story. Fundamentally we can argue strong demand, but without the interest of the funds and without a significant weather story to threaten supply, it’s tough to expect demand to be able to do much more of the heavy lifting.  The Pro Farmer Crop Tour finished their second leg last night and released estimates for both Indiana and Nebraska. The results for Indiana project an average yield of 182.33 bushels per acre, up substantially from last year’s 171.23 estimate vs. and up a great deal more from the 162.5 three-year tour average. The USDA is currently forecasting the Indiana crop at 186 bushels per acre vs. 180 average yield harvested last year. Nebraska is showing an average yield of 179.20 bushels per acre, also up aggressively from last year’s tour estimate of 165.42 and the 163.06 three-year average. The USDA is currently estimating the Nebraska average yield at 196 bushels per acre vs. 181 last year. Keep in mind this Nebraska number can be heavily debated based on irrigated or non-irrigated fields in the survey.

Soybean bears are talking about ample moisture and cooperative temperatures for a large majority of U.S. soybean acres. Bears also continue to see ongoing trade headwinds with the Chinese, and Brazilian producers better positioning themselves to take advantage by substantially increasing upcoming soybean acres. The Pro Farmer Crop Tour posted results for the second leg of their tour: Nebraska’s average soybean pod estimate for a 3×3′ area was forecast at 1299.08, up +15% from last year’s 1131.02 average pod count and up substantially from the three-year average of 1191.37. The USDA is currently forecasting the Nebraska average soybean yield at 61 bushels per acre vs. 57.5 last year. The Indiana numbers were released, with the tour forecasting the 3×3′ average pod count at 1311.87, up roughly +12% from last year’s 1168.78 and up even more from the 1146.76 there-year average. The USDA is currently forecasting the Indiana average yield at 58 bushels per acre vs. 54 last year.

President Trump ordered federal assistance to areas in Iowa affected by severe storms, tornadoes, winds and flooding in June and July. Federal funding is available to state and local governments, as well as to nonprofits, on a cost-sharing basis for emergency work and repair of facilities in 30 of the hardest-hit counties. (Source: USDA)

Pipeline Foods LLC., a U.S.-based supply chain solutions company focused on organic, non-GMO and regenerative food and feed, will acquire a 3.4-million-bushel grain elevator from Archer Daniels Midland Company in Atlantic, Iowa. This will be the sixth facility acquired by Pipeline across Canada and the U.S. Pipeline Foods will now have a direct relationship with farmers in the region, helping to ensure identity preservation of the product and allowing them to take ownership at the farm gate, thereby increasing transparency and traceability for all stakeholders. This might provide opportunities for those looking to diversify.

According to new research released by the Solar Energy Industries Association, more than 46 MW of solar capacity are operating at 37 professional sports facilities nationwide. Every leading sports league in the United States, including the NFL, NBA, MLB, NHL, MLS, NASCAR and Indy Car boast solar assets. A third of the NFL stadiums in the U.S. have a solar system, with the MLB and NBA not far behind with 30% each. To put the proliferation of solar across professional sports in context, last year nearly 42 million Americans attended an event at a stadium, arena or raceway with a solar system. For those who do not know, Gold-Eagle has also joined in the use of Solar at our Wesley location.


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