Sep 14, 2021

CBOT Prices Start Higher, but Lack Direction

Tropical Storm Nicholas poses some threat to harvest in the Delta

US Crop Progress Report as of September 12

  • The Crop Progress Report showed corn conditions falling slightly with a one point drop in the G/E rating, but with harvest starting, changes in conditions are not likely to have a great impact on yields.

  • 37% of the corn crop is now mature versus 31% average; corn harvest has begun with 4% of the crop now in the bins.

  • Soybean conditions were marginally raised, though the good/excellent rating had no change.

  • 38% of the bean crop is dropping leaves versus 29% average; the report will begin reporting soybean harvest next week.

  • Spring wheat harvest is now complete; winter wheat is now 12% planted, ahead of the 8% average.

  • Sorghum harvest is 21% done, behind the average of 25%.

  • The cotton crop rating was 64% good to excellent compared to 61% previously, with 36% of bolls opening, and harvest is just 5% complete.

FBN’s Take On What It Means: Harvest for corn has begun, and soybeans started in the south. Tropical Storm Nicholas poses some threat to harvest in the Delta, but models suggest only about one percent of national acreage is at risk of damage. Elsewhere, weather will be conducive to harvesting, and the forecasted heat and dryness will push crop maturity.


Brazil’s Farmers Sell More Corn as Demand Rises

  • Agribusiness consultant Safras & Mercado estimated that Brazil has sold 70.1% of its second corn crop.

  • This is up from 62.6% at this same time last year.

  • Planting delays, drought, and an ill-timed frost drastically cut Brazil’s total corn production; internal prices rose and Brazil’s exports fell.

  • Brazil’s second corn crop represents 70% of the country’s yearly production and is estimated at 55.7 million tonnes; harvest of it is nearly finished.

  • Meanwhile, Brazil’s new corn crop has finished planting in 16.7% of its expected area.

FBN’s Take On What It Means: Brazil experienced a rough second corn crop this year, and farmers there are understandably taking advantage of the higher prices. In the latest WASDE, the USDA cut Brazil’s old crop production by one million tonnes, in line with market expectations. This helped raise expected U.S. exports by 75 million bushels. While the USDA did not cut new crop production for Brazil (which is being planted now), weather risks remain a real possibility.

FBN Market Advisory services are offered by FBN BR LLC, dba FBN Brokerage, FBN BR and FBN Market Advisory (NFA ID: 0508695)

The risk of trading futures and options can be substantial and may not be suitable for all investors. Past performance is not necessarily indicative of future results.

This is not an offer or solicitation in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be contrary to the local laws and regulations of that jurisdiction, including, but not limited to, persons residing in Australia and Canada.

Kevin McNew

Recently Added to Buyer's Guide

HP FiberBoost©

  • Contains functional fibers produced specifically for dietetic use in piglets
  • Fiber stimulates gut and eases transition at weaning

Huve Check-Feed

  • On-site screening test to detect monensin, including Monovet® 90, in feedstuffs
  • Produces accurate, reliable results without adding microtracer particles to feed for detection methods

VM-13.3 G

  • Industrial-grade 13.3-inch LCD monitor
  • Full HD resolution: 1920 x 1080 (1080p/60)

Safety 101

  • Designed to keep all safety activity in one place across all locations
  • Mobile Inspection App to perform walk-around inspections, toolbox talks, JSAs and more

GMS Mixer

  • Fast and gentle mixing
  • Two horizontally arranged, superimposed mixing tools

Centrifugal Sifter

  • Can process up to 100,000 kg/hour, removing foreign bodies as small as 0.1 mm
  • Can be situated in gravity-fed configuration or within inline processes such as a pneumatic conveying line


Marketwatch: Oct, 24

cmdty National Corn Price Idx: ZCPAUS.CM

open: 5.1374
high: 5.1867
low: 5.1249
close: 5.1668

cmdty National Soybean Price Idx: ZSPAUS.CM

open: 11.801
high: 11.861
low: 11.7324
close: 11.7679

cmdty National Hard Red Winter Wheat Price Idx: KEPAUS.CM

open: 7.4043
high: 7.5443
low: 7.3993
close: 7.5365

cmdty National Soft Red Winter Wheat Price Idx: ZWPAUS.CM

open: 6.9986
high: 7.0999
low: 6.9861
close: 7.0671