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BRIAN HOOPS

By Staff | Oct 21, 2016

Iowa farmer sentenced

A northern Iowa farmer was sentenced six months in prison for selling corn that was pledged as collateral on federal Farm Service Agency loans of more than $196,000.

Fifty-nine-year-old Leroy Jones, of Floyd, was sentenced Oct. 12 in U.S. District Court in Cedar Rapids. The judge ordered Jones to pay nearly $138,000 in restitution. Jones pleaded guilty to one count of conversion of property pledged to the agency.

Jones admitted during his plea hearing to removing or converting nearly 90,600 bushels of corn that he’d pledged as collateral. Jones said he sold the corn for nearly $333,000 from Dec. 1, 2014, through Sept. 30, 2015.

Syngenta lawsuit

The lawsuit farmers brought against Syngenta can move forward as a class action. In this case, farmers sued Syngenta after traces of Agrisure Viptera corn were found in grain shipments to China. In 2014, China rejected U.S. corn and prices declined. A U.S. district court judge in Kansas has certified a nationwide class and statewide classes in eight individual states.

A Syngenta spokesman said an appeal to the class action certification is being considered.

CORN ANALYSIS

Corn closed the week 13.75 cents higher. Last week, private exporters reported sale of 161,544 metric tons of corn to an unknown destination.

In the weekly export sales report, corn showed a total of 35.6 mb (903,900 mt) with 34.4 mb (873,400 mt) for the 2016-2017 marketing year. This was above the 29.6 mb (746,000 mt) needed this week to be on pace with USDA’s October demand projection of 2.225 billion bushels.

NASS reported U.S. corn crop conditions were unchanged at 73 percent good-to-excellent versus 73 percent expected and 73 percent last week and above the 68 percent rating last year.

Corn harvest advanced to 35 percent harvested versus 38 percent expected, up from 24 percent last week and the average pace of 38 percent.

The supply/demand report held little in the way of surprises for the trade as corn yield came in at 173.4 bpa versus estimates at 173.5 bpa, down from 174.4 bpa last month.

This places the crop size at 15.057 bb, down slightly from the estimates of 15.060 bb and lower than 15.093 bb last month.

This crop is still a new record and 15 percent larger than a year ago. Ending stocks were forecast at 2.32 bb, slightly below estimates of 2.359 bb and 2.384 bb last month.

In a mild surprise, the USDA only added 80,000 harvested acres based on FSA acreage certifications.

Strategy and outlook: Use rallies to sell inventory.

SOYBEANS ANALYSIS

Soybeans closed the week 6 cents higher. Last week, private exporters reported sales of 241,000 mt to China; 115,000 mt of soybeans to an unknown destination and 126,000 mt of meal to an unknown destination.

In the weekly export sales report, soybeans showed a total of 52.1 mb (1,417,800 mt) with 52.1 mb (1,417,100 mt) for the 2016-2017 marketing year.

This was more than the 20.5 mb (557,100 mt) needed this week to be on pace with USDA’s October demand projection of 2.025 bb.

Last week, U.S. soybean crop conditions were unchanged from last week at 74 percent g/e versus 74 percent expected and well above the 64 percent rating last year.

Soybean harvested advanced to 44 percent complete versus 48 percent expected, up from 26 percent last week and 47 percent on average.

In the supply/demand report, yields came in at 51.4 bpa, just slightly below estimates of 51.5 bpa, but up slightly from 50.6 bpa last month.

Soybean production rose to 4.269 bb, slightly below the estimates of 4.286 bb and up slightly from 4.201 bb last month.

Production will be a record and is 9 percent larger than a year ago.

With the production increase, soybean stocks increased to 395 mb from 365 mb previously. However, this was below estimates of 459 mb. World soybean stocks were 77.36 mt versus 72.17 mt last month on production increases in the U.S. and Brazil, while SAM demand was lowered as well as Chinese crush.

Strategy and outlook: Use rallies to sell inventory.

This material has been prepared by a sales or trading employee or agent of Midwest Market Solutions and is, or is in the nature of, a solicitation. This material is not a research report prepared by Midwest Market Solution’s Research Department.

Brian Hoops can be reached at (605) 660-1155.

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