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Big this week: Booming bean market
Though the grains slipped overnight Wednesday and into Thursday, soybeans spent the week surging on declining crop estimates.
One of those estimates came from USDA this week, which showed both corn and soybean conditions slipped from the previous week. Most farmers say, in an Agriculture.com Poll, their beans are "nothing to write home about."
But, many farmers don't agree with USDA's estimates, at least for the soybean crop. "By the poll results, 34% of the beans would be listed as good-to-excellent," says Agriculture.com Marketing Talk member roarintiger1. "USDA says 57%. I guess opinions differ on what is 'good' or 'excellent.'"
"Will prices maintain current high levels as we move through harvest? That would be unusual indeed, especially with prices hovering near record high levels for corn." Market Analyst Ray Grabanski said this week. "Given that scenario, it might be difficult for prices to hold these current lofty levels."
Though grain demand has been getting a lot of the attention in the market these days, Market Analyst Bryan Doherty says the supply picture is really in the driver's seat. "It's the supply that counts, and with expectations that this crop could yet shrink, the market continues to trend upward," he says.
A hot topic among farmers this week has been the "effects of higher grain prices." Land rents, farming practices, land management and machinery are all things that could see big changes in the future if the grain markets settle on a new higher plateau. See what else farmers say and add your 2 cents' worth.
The meteorological summer ended Wednesday, and after this week, cooler temperatures will prevail. "We are really getting too late to help out the corn and soybean crops with rainfall now, anyway," says Freese-Notis Weather, Inc.'s Craig Solberg. "A true wet pattern is not yet in the forecast."
In case you missed it last week, Agriculture.com's John Walter recently conducted a 1,200-mile road trip to check on corn conditions. The tour found 2 main themes from Iowa to Indiana and south to the Delta region: Disappointing yields and a lot of variability.