Last week’s WASDE report provided very little change to U.S. Grain Carryout. They bumped up their forecast for corn used for ethanol production by 25 million bushels while cutting exports by 50 million bushels, resulting in a 25 million bushel increase to 15/16 ending stocks. The new ending stocks figure of 1.787 billion bushels was within the range of pre-report estimates. Soybean and wheat ending stocks were unchanged. The ending stocks-to-use ratio for corn was lifted to 13.1% while soybeans ending stocks-to-use ratio remained at 12.4%.
|2015-16 USDA U.S. Grain Carryout (bln bu)|
|Average Trade Est.||Range ofTrade Est.||USDA Nov
USDA did not release any updated crop production forecasts for corn, soybeans or wheat. Those updates, if any, will be included in January’s annual crop production report.
At this time of year, plans are being made for next year’s crop. Input costs are being identified, rents are being negotiated, and producers are figuring out what it cost them to raise a bushel of grain. This is a good time to talk to your ProEdge Grain Specialist to discuss orders and contract ideas that can result in profitable sales. If that price is not currently available, orders can be given above the market, ready to be filled, when the market provides that opportunity.
With old crop bushels yet to be sold, now is a good time to analyze. What your final production was, what sales have been made, when you need to move grain, and when you will need to generate dollars for cash flow needs. Then discuss these questions with your ProEdge Grain Specialist the variety of grain contracts available to meet pricing goals.
We have contracts that allow you to keep grain moving, provide you cash and keep the price open to the market. We can discuss how to take advantage of the “carry” in the market and how your local “basis” moves and how that affects your final price. We can show you how our Bonus Premium contract works and how that could fit into your marketing plan.
Coming up in January will be our ProEdge Winter Meetings, which I would strongly encourage everyone to attend. These meetings will provide market insight and find out what next year may hold for marketing opportunities. These meetings will be held at numerous locations throughout our trade area, so be on the lookout for your invitation.
Finally, I want to wish you all a Very Merry Christmas and a Happy and Healthy New Year!!!