RCM Ag Services Blog

Ag Markets Update: July 25 – 31

As weather across the country continues to be supportive for the crops corn prices have dropped. The past few weeks of timely rain and cooler temperatures has put a trend line or record national yield very much in view. From talking to farmers across the country many think this has potential to be one of their best crops and as great as that is everyone knows the larger the yields the lower the prices tend to be. With China well behind on their phase 1 trade agreement purchases, corn will need to get support elsewhere unless China decides to ramp ...
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Ag Markets Update: July 18 – 24

Corn held relatively steady this week after falling the past few weeks due to the June crop report. Exports have stayed consistent, but the lack of any weather problems is keeping corn in the range it is in. The cooler forecast with enough rain to support the crop is going to prevent upward price movement with the possibility of a 178 (trend line) yield still in play. China is the main buyer of U.S. Corn right now as major rains that are threatening the Three Gorges Dam area and throughout the Hubei Province have wiped out much of the non-U.S ...
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Ag Markets Update: July 11 – 17

Despite one of the largest single export sales to China ever, prices for the week fell. After some welcome rains in the past week in areas that were dry, favorable outlook during pollination has the potential to help make this crop large. Ultimately, as yield potential continues to look high, big bumps in corn are looking slim unless there is a surprise in forecast changes or export sales. The crop conditions continue to look strong as you can see in the chart below. We are not near/at record conditions, but still have very strong numbers at this point in the ...
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Ag Markets Update: July 4 – 10

Corn had a choppy week only to end $0.09 lower after last week’s shockingly bullish USDA report. The main price mover this week was the uncertainty in the weather outlook. The weather post July 15th has been in limbo of hot and dry or cooler with some rain. Hot and dry would hurt the crop for the long run lowering yield, which is when we saw the prices rise on certain days. The post July 15th to August 1st period is very important to keep an eye on moving forward as the weather will be the key mover and the ...
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Ag Markets Update: June 27 – July 2

Corn finally got some positive news in the USDA report this week with planted acres coming in well below the March estimate and below the trade estimate. Planted acres came in 92.006 million which is about 5 million acres less than the estimate in March of 96.990 million. One thing of note from the USDA NASS Farm Labor survey that took place between May 30 and June 16, is that there was still 2.24 million acres of corn to be planted of the 92.006 million. This means that the acreage could still be lower if the entirety of that 2.24 ...
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AG Markets Update: June 22-26

Corn prices have taken a hit this week with Dec ’20 futures dipping below $3.30. Rains over the past week in the corn belt and warm temperatures will help support the crop along with rains and warm temps heading into the 4th of July. Exports continued their lackluster pace with no big sales to provide any supportive news. Tuesdays Stocks and Acreage report is the only place to look if you are looking for bullish news, but do not get your hopes up for a positive surprise from the USDA. The average trade estimate for US corn planted acres is ...
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AG MARKETS UPDATE: JUNE 13 – 19

The July corn price has slowly climbed up since the start of May, more of a crawl than a climb, but front month prices have moved up. The next month of weather will be really important for this years corn crop and decide what level of potential yields we could see. The next week looks to dump a lot of rain in the western corn belt which has had some really dry areas, and moderate amounts of rain in Illinois over to Ohio and throughout the SE. The combination of good weather and a lack of any serious exports does ...
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Ag Markets Update: June 6 – 12

The 2020 June USDA Crop Report came out Thursday and contained little surprise for the corn market. The report did trim off some ending stocks from 19/20 as they adjusted for the corn that was lost in ND that was never harvested until this spring due to weather problems. Corn seems to have little news to drive it significantly higher in the near term as there is favorable weather in most areas that have corn already growing. We should keep our eye on the lack of rain in the 7-14 day window as an early lack of rain could effect ...
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Ag Markets Update: May 30- June 5

Planting is close to done in most parts of the country with over 90% of corn in the ground. Now the focus will turn to weather as early growing season is an important time. With a tropical depression in the gulf, it makes it difficult to predict future weather patterns as they are constantly changing. One model predicts for a drought type pattern in the southern plains and western corn belt as the tropical storm Cristobal pulls a lot of energy, so we’ll see how that pans out. Corn prices have been steady the past few weeks with few purchases ...
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AG MARKETS UPDATE: MAY 23-29

Planting is almost complete across the country as the final reported number was 88% planted this week. The weather outlook into early June is promising for many areas that were delayed in planting to still be able to get their crop in the ground in early June with the exception of parts of North Dakota that will be hard to catch up. With little news in the markets this month, trade has been pretty stagnant. July corn did trade at $3.30 in the July contract for the first time in over a month on Thursday before falling back to $3.27 ...
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