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Kevin McNew: Crops head to harvest with strong yields

Agriculture.com Staff 08/21/2009 @ 9:10am

Pro Farmer's annual crop tour found a lot of variability in growing conditions and crop sizes across the Midwest, but the central theme would be better than average crops for the Midwest as a whole. Western states like NE, SD & IA seems to have better than average yield potential while some Eastern States are seeing the effects of a late planting.

As the growing season hits the home stretch, grain futures have started to pull back as has basis levels. Soybean basis took a huge hit this week, with spot basis bids tumbling 25 cents a bushel on average. In the corn market, average spot basis levels were mostly unchanged across the country.

Corn basis was slightly weaker in key river markets this week, as barge rates begin to increase along their normal seasonal pattern. Look for further weakness in these key areas for the coming week as barge rates continue to climb.

For beans, higher barge rates coupled with a 40-cent drop in Gulf basis took a significant toll on soybean basis around the river system. Losses of 40 to 60 cents on basis against nearby Sep futures were fairly typical over the past week.

Pro Farmer's annual crop tour found a lot of variability in growing conditions and crop sizes across the Midwest, but the central theme would be better than average crops for the Midwest as a whole. Western states like NE, SD & IA seems to have better than average yield potential while some Eastern States are seeing the effects of a late planting.

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