Deere & Company announced it has taken legal action against Precision Planting LLC and AGCO Corporation, claiming the companies have infringed on 12 John Deere patents.

According to a company news release, the patents relate to several aspects of John Deere planting equipment, including ExactEmerge technology.

The lawsuit states that products made or sold by Precision Planting, including vSet seed meters along with SpeedTube products, infringe on Deere patents.

Corn analysis

Corn closed the week 14 and 1/2 cents lower. Last week, private exporters announced sale of 152,000 mts of corn to

Mexico.

Weekly export sales of corn showed a total of 46.3 mb (1,176,600 mt) with 36.9 mb (936,400 mt) for the 2017 -2018 marketing year. This put total shipments plus outstanding sales at 2.214 bb, 3 percent above the previous marketing year. In the weekly crop progress report, NASS reported U.S. corn crop conditions at 77 percent good/excellent versus 78 percent expected, down 1 percent from 78 percent last week versus 67 percent last year.

Weekly ethanol production rose 12,000 bpd to 1.053 million bpd and ethanol supplies rose 300,000 to 22.2 million barrels. In the monthly supply/demand report, the USDA made reductions to old crop and new crop corn carryout projections. 2017/18 exports were raised 75 million bushels, imports reduced 5 million for an 80 mb carryout reduction to 2.102 bb.

The 2018/19 carryout was projected at 1.57 7bb after reducing carry-in and raising corn used for ethanol.

World carryout also was friendly as the USDA now has the 18/19 world carryout projected at 154.69 mmt versus 192.69 mmt in 17/18 and 227.89 mmt at the end of the 16/17 marketing year.

Strategy and outlook

Producers should have either made sales or bought puts to establish a price floor. Hold these options or roll them down and re-own sales with cheap out of the money calls.

Soybeans analysis

Soybeans closed the week $.63 lower. Last week, private exporters announced sale of 177,000 mts of soybeans

to an unknown destination.

Weekly export sales of soybeans showed a total of 29.8 mb (810,600 mt) with 19.1 mb (519,600 mt) for the 2017-2018 marketing year. Total shipments plus outstanding sales were 2.063 bb, 5 percent less than the previous marketing year. In the weekly crop progress and conditions report, U.S. soybean crop conditions are reported at 74 percent good/excellent versus 75 percent expected and 75 percent last week versus 66 percent last year.

U.S. soybean planting is 93 percent complete versus 94 percent expected, 87 percent last week, 91 percebt last year, 85 percent average.

The monthly supply/demand report showed the USDA raised crush in both the 2017/18 and 2018/19 crop years. They also lowered the 2018/19 carrying levels and reduced the ending stocks figures to 385 mb from 415 mb last month. The USDA pegged Brazil 2018/19 production at 118 mmt, and put 2017/18 production at 119 mmt, up 2 mmt from the May report and 1 mmt above CONAB.

They also estimated this year’s Argentina production at 37 mmt down from 39 mmt in May. The USDA raised world carryout .32 mmt to 87.0 mmts. NOPA Crush report came in below expectations at 163.57 mb. Trade was looking for 165.1 mb. It was a strong number however as it was above last month’s 161.0 mb and well above a year ago’s 149.2 mb.

Strategy and outloook

Producers should have either made sales or bought puts to establish a price floor. Hold these options or roll them down and re-own sales with cheap out of the money calls.

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. The risk of loss in trading futures and/or options is substantial and each investor and/or trader must consider whether this is a suitable investment. Past performance, whether actual or indicated by simulated historical tests of strategies, is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that Midwest Market Solutions believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such.

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