“Tuesdays by repute stage turnarounds in Chicago grain and soybean futures. Which would, this time, imply a strong start to the day, after the falls in the last session to contract closing lows. And indeed that was the size of things, with futures broadly showing gains, if small ones – a kind of turnaround-lite. The one contract which did manage quite some elevation was August soybeans, adding 1.1% to $11.89 a bushel as of 09:40 UK time (03:40 Chicago time), helped by the sale on Monday to China of 120,000 tonnes of US crop for 2013-14 – when US supplies are already running low.”
Looks like the marketeers have finally recovered from the weekend on Tuesday.
“You will see from the data in this post that the RFS mandated corn ethanol program spurred corn acreage by 25 percent in the U.S. because of a new and rapid increased demand, which drove prices higher.Positive grower returns have supported the expansion of U.S. corn area since the late 2000s. Returns to corn production—the value above total economic costs that include opportunity costs of land, labor, and other owned resources—have been positive since 2007.”
The US subsidies (though they wouldn’t use that incendiary word) to the bio-fuel industry, sparked this change. If you are producing ethanol, using sugar cane as your base gets you more efficiency. Hence Brazil has a huge advantage.
3. VIDEO: Cost management strategies for corn, soybean farmers | Issues content from Corn and Soybean Digest
“Michael Langemeier, associate director, Center for Commercial Agriculture, Purdue University, talks about managing farm costs. He says growers need to seriously question new machinery purchases and that cash rents should be negociated. Those two items can help control costs when commodity prices fall below breakeven levels.”
When commodity prices are sloping downwards, anything you can do to control costs is money gained.
“A Manitoba Insect and Disease Update for the week of July 14-18, 2014 has been posted at.
- Flowering canola crop needs to be protected against white mold since there have been many rain events lately.
- Phytophthora root rot of soybean has started showing up, especially in flooded fields.
- Early lesions of sunflower rust have been found in a 2nd location.
- Alfalfa weevil levels were quite noticeable in some alfalfa fields, but they are now starting to pupate, so levels are declining.
Wetness fallout in Manitoba
“Weekly Provincial Summary
- Good growing conditions, including warmer temperatures and minimal rainfall,advanced crops and allowed crops impacted by excessive moisture to continue their recovery. Favourable weather also allowed producers to make good progress with haying operations and applications of fungicides.
- However, continuing wet conditions in some areas of Manitoba are impacting crops, hay fields and pastures.
- Disease pressure is being monitored, with reports of brown girdling root rot and blackleg lesions in canola, brown spot disease and bacterial leaf blight in soybeans, and fusarium head blight in winter wheat.