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A Monster Soybean Crop || Cooking Up 2015 Cash Rents
If this week's estimates are any indication, there's a whale of a soybean crop in U.S. fields right now. If the weather cooperates, it could be a record, USDA officials said this week.
The agency's monthly reports came a day after NASS officials showed both corn and soybean conditions have stabilized, with much of both crops remaining in the top 2 quality categories.
Those stabilizing crop ratings come as unseasonably mild temperatures stick around in much of the Midwest. Though rainfall's been a little on the light side in the region, those cooler temps are keeping any crop damage at bay, weather experts say.
Here's one farmer who says he expects a monster corn crop on his northern Iowa farm. Business Editor visited Iowa farmer and Senator Charles Grassley to chat crop conditions, what's new in D.C., and more.
With such expectations for this year's crop, the market's focus may shift, one analyst said this week. "The market will follow a number of indicators of potential use as well as the revealed pace of consumption in the ethanol, export, and feed markets."
The crop's stabilizing conditions and subsequent market reaction calls for replacing soybean hedges if you removed them in the last few weeks, another analyst said this week. "The below-normal temps are leaving our yield model at high yield levels, something we didn't anticipate when we removed hedges a week ago."
Products like options can serve as hedges in the futures market. Options specialist, trader and Agriculture.com analyst Scott Shellady continued his series of videos on options as a trading tool this week. Check it out!
When it comes to farm policy, though, those programs that closely follow what the market's doing may not be the best in terms of the protection they can offer. "If the present low prices fall further and/or hold for a couple of years or more, we will need to reevaluate the current configuration of commodity policies," one economist said this week.
In terms of profitability in the coming year, a couple of key variables can go a long way to making up for lost revenue from low grain prices. One of those is fertilizer. How can you trim your costs? Farmers weigh in with some of their ideas here.
Another huge variable in the coming year in the crop revenue equation will be land rent. How much can and should you be paying to rent your ground in 2015? That depends on yield and grain prices, one economist said this week.
Crop conditions stood stable and USDA pegged a record-large soybean crop this year. See what else you need to know this week.