×
×
homepage logo

Midwest Marketing Solutions

By Staff | May 28, 2019

Minnesota farmer testifies on farmers’ behalf

The House Agriculture Subcommittee on General Farm Commodities and Risk Management heard testimony on the state of the farm economy last Thursday. Northfield, Minnesota farmer Mike Peterson testified before the committee.

“With the continuing slump in commodity prices, financial stress continues to grow. Farm debt is at an all time high. Most farmers I know have burned through their equity they built up the good years,” said Peterson. “We are now seeing an increase in Chapter 12 bankruptcies in Minnesota. Unless we get our markets back and prices rebound, I think many farmers will be forced out of business.”

Peterson also said input costs have not turned lower as they have in other time of low commodity prices.

Karlstad Farmers Elevator to close

The Minnesota Department of Agriculture received notice from the Karlstad Farmers Elevator that their doors are closing. Therefore, MDA is advising farmers who have not received payment or had grain stored at the elevator to file a bond claim. The elevator holds a $70,000 bond with the department to help mitigate losses upon closure. Supportive documents such as scale tickets, purchase agreements, contracts and warehouse receipts should be included. All submitted claims will be reviewed, and the deadline is dependent on the date of non-payment.

Corn analysis

Corn closed the week $.32 1/2 higher. Last week, private exporters did not announce any private sales.

U.S. corn exports inspections were 39.4 million bushels, little changed from the previous week’s 38.5 mb, but were substantially below last year’s same-week exports 62.1 million bushels.

According to RJO, over the last six weeks, corn exports have been respectable, averaging 45.6 million bushels/week, but still paled in comparison to last year’s incredible 67.0 million bushels/week during the same period.

Over the remaining 16 weeks in the marketing year, corn exports will need to average roughly 36.7 million bushels/week in order to reach the USDA’s 2.300 billion bushel export projection.

In the weekly crop progress report; U.S. corn planting advanced to 30 percent complete versus 35 percent expected, 23 percent last week, 59 percent last year and 66 percent average.

Corn planting continues to lag in Illinois (10 percent), Indiana (3 percent) and Ohio (2 percent) as well as South Dakota (0 percent), North Dakota (3 percent) and Minnesota (6 percent).

Emergence is 6 percent nationwide behind the average of 29 percent. Producers should be able to make good progress this week.

Strategy and outlook

With funds covering shorts due to adverse weather conditions, producers should use the rally to exit old crop inventories and focus on marketing new crop supplies.

Soybeans analysis

Soybeans closed the week $.12 3/4 higher. Last week, private exporters announced sale of 180,000 metric tons of soybeans for delivery to an unknown destination for 2018/19.

U.S. soybean exports last week were 18.9 million bushels, down from the previous week’s 22.2 million bushels and last year’s same-week exports of 25.7 million bushels. Despite the USDA’s 100 million bushel export projection reduction to 1.775 billion bushels, this week’s exports were still well below the roughly 30.4 million bushels soybeans will need to average on a weekly basis through the end of August.

U.S. soybean planting is only 9 percent complete versus 15 percent expected, 6 percent last week, 32 percent last year and 29 percent average.

The NOPA April Soybean Crush report saw a crush of 160.0 million bushels of soybeans in April, down from 170.0 million in March and down slightly from last April’s 161.0 million. According to RJO; U.S.-wide crush for the month will be around 169 million bushels, which would reflect the 3rd consecutive month in which crush was below the previous year’s level after a streak of 19 months in which year-over-year gains were posted.

Soyoil stocks rose to 1.787 billion pounds, above last month’s 1.761 billion pounds.

Strategy and outlook

With funds covering shorts due to adverse weather conditions, producers should use the rally to exit old crop inventories and focus on marketing new crop supplies.

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

Please Enter Your Facebook App ID. Required for FB Comments. Click here for FB Comments Settings page