Market Commentary > Weekly Crop Commentary

Weekly Crop Commentary

Jun 05, 2020

Ed Nienaber
Vice President, Grain Division

Wes Bahan
Director of Grain Purchasing

Planting Progress in the Marysville area

Corn 100%- Soybeans 85%

Good afternoon. Well the first week of June provided a window to finish corn planting and most did just that. There was some switching to beans and there will be some prevent plant taken, but most of the intended acres were planted to corn, and some will need to be replanted once things dry out again. Corn basis continues to inch its way higher especially for immediate shipment-and bean basis levels continues to be steady. Once the crop gets out of the ground, most expect good movement from the producer to make room for the new crop. We saw a nice rally in the soybean prices this week. We continue to get sales reports from the USDA almost daily, and we are seeing some weather premium included. This type of market activity is common for this time of year. We saw a good amount of soybean selling from farmers, but corn selling was very light. The USDA will be out with updated supply and demand numbers next week-and at the end of the month we will get certified planted acreage and quarterly grain stocks.


Lou Baughman
Region 1 Grain Merchandiser

Sunday’s crop progress report showed no surprises. Crops are going in the ground and emerging nicely. Crop conditions keep improving, only spots here and there continue to have wet conditions. It was confirmed Tuesday that China purchased two cargos of beans and continued purchases from them and unknown (probably them too) this week has put more optimism in the market. There were stories coming from China that the Chinese government would halt all purchases from the US but China needs US soybeans and pork.

On the local level, grain movement has been slow. Planting is still going on but is getting wrapped up north of Kenton. South of town, a big chunk got put into the ground this week. Corn is in for the most part and beans are about 85-90% planted county wide.

Lisa Warne
Region 3 Grain Merchandiser

Planting Progress –

Mechanicsburg: Corn 98% Beans 90%

West Liberty: Corn 100% Beans 95%

DeGraff: Corn 100% Beans 90%

Good afternoon! What a week. Corn planting basically wrapped up, soybeans had their biggest weekly gain in
8 months, and the stock market is on track for its third consecutive weekly gain. Wall Street was surprised by
a May jobs report that was actually a gain in jobs rather than the nearly 8 million job loss it expected.
Unemployment was anticipated to be 19.8% but came in at 13.3% instead. The VIX (fear index) traded below
24 this morning, a 3-month low, indicating fund managers are feeling more comfortable investing.

Locally, cash corn basis improved a nickel midweek as usage is slowly picking back up. As planting wraps up, a
few wheels have been rolling into the elevator with inbound grain. Thunderstorms have been very spotty –
anywhere from a trace to nearly a couple inches of rain. There were even reports of hail in the Cable and
Milford Center areas. Those finished with planting actually look forward to some nice rains, but Mother Nature
can stop with anymore hail! Enjoy the weekend and we look forward to talking with you next week.

Ralph Wince
Region 5 Grain Merchandiser

Planting Progress –

Canfield/Lisbon: Corn 95% Beans 90%

Westville: Corn 100% Beans 95%

NewPhilly/Waterford: Corn 90% Beans 85%

Good Afternoon, finally the grain markets have shown a little upside this week. The soybean market has not
been this high since April 13th and we have rallied .49 cents off the low on April 21st. China has been coming to
the US again and buying old crop as well as new crop beans and the dollar has been weakening for the last
number of days so both of those have helped the bean market. This is an opportunity to price those old crop
beans and take advantage of this rally. Corn has also come off its lows from April 21st as well. Today we are .22
cents off the lows. The funds are holding a fairly large short position right now and if we get something
somewhat positive this could get them to buy back some of those short positions. If this market was to rally
another .15 to .20 cents I would look at be a seller of old crop corn as well as maybe selling some NC-20 corn
as well. The other thing on corn that you might start considering is maybe pricing some NC-21 corn, Dec-21
CBOT closed at 3.75 today. You add .20 cents to that we are really close to 4.00 futures. This corn story is
hard to find a real bullish story right now. As far as planting goes we seem to be getting very close to having
the 2020 crop planted. Here is where I see things this week. Have a good weekend.

Steve Bricher
Region 3 Grain Merchandiser


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