Corn, soybean and wheat prices all made gains over the week, which was marked by traders’ skepticism over the latest USDA crop report and concerns for hotter and drier weather this week.
As noted in the previous story, the USDA made few changes in its outlook for the U.S. crops on July 11, noting that more information is coming next month. Corn prices rose despite the estimate for a larger crop. The trade was expecting a lower number because of the impact of unprecedented planting delays on yields. Rising basis levels in the Eastern Corn Belt reflected the concerns over acreage and crop development. For example, the old crop basis at Toledo, Ohio jumped 8 cents (US), or more than 25%, last week. Closer to home, the Chatham-Kent (CK) high basis added another 15 cents.
Corn and soybeans ended the week with a flourish on Friday on the forecasts for hotter and drier weather for the next six to ten days. Old and new crop corn futures were 10 to 11 cents higher while soybeans were up 14 cents from Thursday.
For old crop corn, the Chicago future (Sept.19) closed at $4.54 on Friday, up 15 cents from July 5. The new crop future (Dec.19) closed at $4.59, up 17 cents.
The CK high cash price was $6.14, up approximately 31 cents from the previous week. The new crop high price was up 17 cents at $5.84.
At the same time last year, the CK high old cash price was $4.46, and the new crop was $4.44.
The old crop soybean future (Aug. 2019) was up 37 cents from the previous week, at $9.13. The new crop (Nov. 19) future also gained 37 cents at $9.32
The CK old cash price on Friday was $11.28, up 42 cents from the previous week. The new crop price was up 37 cents at $11.32.
Last year, the CK high old crop price was $10.94, and the new was $10.89.
For old crop wheat, the Sept. future in Chicago was up 8 cents from the previous week, closing at $5.23. The new crop (July 20) future was up 12 cents at $5.53.
The Grain Farmers of Ontario (GFO) Soft Red Winter Wheat cash price was up 14 cents at $7.00. The new crop price was 12 cents higher at $6.86.
Last year, the GFO Soft Red Winter Wheat cash price was $6.18; the new crop price was $6.68.