Weekly Commodity Market Update

Brownfield’s Weekly Commodity update featuring former OSU Extension Ag Economist Ben Brown.

This Week’s Topics:

  • Market recap
  • Penciling out profit
  • South American production
  • South American second crop planting
  • Managing production cost
  • Corn acreage to fall
  • Reports to watch

This week Will and Ben look at falling crop prices across the board and what it’ll take to stabilize.

Market recap (Changes on week as of Monday’s close):

  • March 2024 corn down $0.05 at $4.40
  • December 2024 corn down $.01 $4.74
  • March 2024 soybeans down $.29 at $11.94
  •  November 2024 soybeans down $.17 at $11.80
  • March soybean oil down 2.61 cents at 45.55 cents/lb
    – March soybean meal down $1.50 at $354.30/short ton
  • March 2024 wheat down $.06 at $5.93
  • July 2024 wheat down $.03 at $6.09
  • March WTI Crude Oil up $2.13 at $76.78/barrel

Weekly Highlights

  • US Gross Domestic Product grew 3.3% in the fourth quarter of 2023- down from the 4.9% in the third quarter but well above the 2% growth expected. Taking out the sharp recovery after the pandemic in 2020. The 3rd and 4th quarters are the strongest two quarters back-to-back since 2014.
  • Core Inflation at 0.2 month over month was right inline with expectations and core inflation year over year of 2.6% was as expected.
  • The housing market continues to run hot- with New home sales at 664,000 up from last month and expectations and pending home sales up to a huge number of 8.3% in December- the largest number since June 2020.
  • It was another fairly risky week for US commodities. Open interest positions increased across the board for Chicago wheat (2.7%), Corn (5.7%), soybeans (6.5%), soybean oil (3.7%), soybean meal (3.4%), cotton (10.7%), and rough rice (0.4%).
  • Producers and Merchants increased their net positions of corn adding to the small net long while also adding net positions of soybeans shrinking their small net short. Producers and Merchants sold off net wheat contracts adding to the net short in Chicago wheat.
  • Managed money traders sold off another 4,743 contracts of Chicago corn while selling 15,045 contracts of soybeans to increase the net short there as well. Managed accounts added 26,518 contracts of cotton futures to take the small net short into a net long.
  • US crude oil stocks excluding the strategic petroleum reserve were down another 388 million gallons while gasoline stocks increased 206 million gallons on a 5% week over week reduction in gasoline demand.
  • As expected, US ethanol production pulled back to 240 million gallons- down from 310 million gallons the week prior due to the cold snap in the US. Even with the drastic drop in ethanol production-ethanol stocks increased due to the drop in gasoline demand and blending.
  • Exports sales were lower this week nearly across the board and bearish for soybeans. Only SRW wheat posted week over week gains.
  • Weekly grain and oilseed export inspections for the week were neutral for corn and soybeans, while bearish for wheats and grain sorghum. Corn, HRW and HRS wheats were the only commodities up week over week.

Weekly Commodity Market Update

Brownfield’s Weekly Commodity update featuring former OSU Extension Ag Economist Ben Brown.

This Week’s Topics:

  • Market recap
  • U.S. grain stocks adjustments
  • U.S. harvest
  • Corn and soybean storage
  • Reports to watch

Market recap (Changes on week as of Monday’s close):

  • December 2023 corn up $.07 at $4.88
  • December 2024 corn up $.08 at $5.17
  • November 2023 soybeans down $.20 at $12.77
  • November 2024 soybeans up $.06 at $12.67
  • December soybean oil flat at 57.43 cents/lb
  • December soybean meal down $15.50 at $374.30/short ton
  • December 2023 wheat down $.25 at $5.64
  • July 2024 wheat down $.12 at $6.31
  • November WTI Crude Oil down $2.38 at $87.24/barrel

Weekly Highlights

  • For the most recent week of data- US crude oil stocks were down (-91 mil. gals) while US gasoline (+43.1 mil. gal.), Distillate (16.7 mil. gal.) and ethanol (16.7 mil. gal.) were all up.
  • Ethanol production rebounded to 297 million gallons produced on the week using an estimated 99.9 million bushels of corn.
  • US Ag Export sales were up for most commodities week over week including corn, soybeans, grain sorghum, and all wheats. US wheat sales were bullish coming in above pre-report estimates.
  • It was the third consecutive week producers and merchants decreased their net short in Chicago futures and options positions by more than 40%- this week 49%. Producers and merchants also reduced the net long in soybeans for the fourth consecutive week.
  • Managed money traders of Chicago commodities were mixed. They were net buyers of wheats and net sellers of corn and soybeans.
  • Weekly ag export inspections were down week over week for corn and wheat, but up week over week for soybeans and grain sorghum. All were within pre-report trade expectations.
  • US Grain stocks on September 1 were all within trade expectations but toward the top end for soybeans and below the average trade guess for corn. Both corn and soybean stocks were down from September 1, 2022.
  • The quarterly Hogs and Pigs report showed that there were 74.3 million hogs and pigs in the US- up slightly from last September.
  • Soybeans crushed for crude oil in August was 169 million bushels- down from 183 million in July, 175 million last August and pre-report expectations of 171.6 million bushels.
  • Corn crushed in August totaled 490 million bushels- below July 2023 but up 1% from August 2022. Corn for fuel alcohol at 443 million bushels, was down 3% from July but up 3% from last August.
  • US corn harvest is now 23% complete with corn crop conditions showing some slight improvement as combines roll along. Weekly increases were pretty consistent across the country.
  • US soybean harvest is now 23% complete up 11% week over week. Conditions improved on the week after declining last week.
  • 40% of the Winter wheat crop has been planted so far- slightly ahead last years pace but behind the average pace.

Weekly Commodity Market Update

Brownfield’s Weekly Commodity update featuring former OSU Extension Ag Economist Ben Brown.

This Week’s Topics:

  • Market recap
  • U.S. harvest overview
  • U.S. wheat planting
  • Ukraine production estimate up
  • The Fed holds interest rates steady… but
  • Reports to watch

Market recap (Changes on week as of Monday’s close):

  • December 2023 corn up $.10 at $4.81
  • November soybeans down $.19 at $12.97
  • October soybean oil down 3.64 cents at 58.75 cents/lb
  • October soybean meal up $1.60 at $392.00/short ton
  • December 2023 wheat down $.02 at $5.89
  • July 2024 wheat up $.03 at $6.43
  • September WTI Crude Oil up $0.36 at $89.62/barrelWeekly Highlights
  • US energy stocks dropped across the board this week: crude oil (-90 million gallons), gasoline (35 million gallons), and distillate supplies (-120 million gallons).
  • Ethanol production dropped 17 million gallons to 288 million gallons on the week- the lowest volume in nearly 5 months.
  • The Federal Reserve kept short term rates at a range between 5.25-5.5 during their September meeting.
  • It was a disappointing week for US ag export sales. Corn and wheats were on the low end of trade expectations while soybean sales were below the most bearish estimate. The deficit for export sales is growing fast.
  • Open interest positions of Chicago commodities were mostly up again this week. Corn, soybeans, soybean meal, and wheats saw increases. Rough rice and soybean oil were down.
  • Similar to last week, producers and merchants were active buyers of Chicago corn on the week decreasing their net short position of futures and options by nearly 42% after 42% the week before. Conversely, managed money traders were net sellers increasing their net short by nearly 10,000 positions. For soybeans, producers and merchants sold off 17.6% of their net long position with money managers also shedding 28,000 positions.
  • Friday afternoon’s USDA Cattle on Feed Report showed all US cattle on feed as of September 1 at 11.094 million head, or 97.8% of last year. The estimate was just above the average trade estimate of 97.7%. August placements were higher while marketings were lower.
  • US agricultural export inspections were up week over week for soybeans and wheat, but down for corn and grain sorghum. All were within trade expectations.
  • US corn harvest is now 15% complete with corn crop conditions showing some slight improvement as combines roll along. While it is unlikely that precipitation is having an impact on crop conditions at this point in the season- yield monitors (or reports from monitors) might. Illinois and Iowa both saw noticeable increases.
  • US soybean harvest is now 12% complete up 7% week over week. Conditions declining only slightly.
  • 26% of the Winter wheat crop has been planted so far- slightly behind last years pace and the average pace. Plantings are being the most in the eastern corn belt due to slow fall harvest. This is where most of the soft red winter wheat is planted.

Wheat Planting Management Considerations for Fall 2023

This year, wheat yields were extremely high across Ohio. In the Ohio Wheat Performance Test (https://ohiocroptest.cfaes.osu.edu/wheattrials/default.asp?year=2023), grain yield averaged between 86 and 126 bu/acre across five Ohio counties. Cool temperatures and adequate subsoil moisture led to a long grain fill period. The long grain fill period coupled with low disease resulted in high-yielding conditions. Mother nature certainly helped us out in 2023; however, fall wheat management is important to set your crop up for success.

Now that we’ve entered mid-September, wheat planting is just around the corner. Here are our key management strategies for this fall:

  1. Plant within the 10-day period starting after the county fly-safe date. It can be tempting to plant wheat before your county’s Hessian fly-safe date (Figure ; however, the best time to plant wheat is the 10-day period starting the day after the fly-safe date. Planting before the fly-safe date increases the risk of insect and disease problems including Hessian fly and aphids carrying Barley Yellow Dwarf Virus. Our wheat planting date field trials have shown no yield benefit of planting prior to the county fly-safe date.
  2. Select high-yielding varieties with high test weight, good straw strength, and adequate disease resistance. Do not jeopardize your investment by planting anything but the best-yielding varieties that also have resistance to the important diseases in your area. Depending on your area of the state, you may need good resistance to powdery mildew, Stagonospora leaf blotch, and/or leaf rust. Avoid varieties with susceptibility to Fusarium head scab. Plant seed that has been properly cleaned to remove shriveled kernels and treated with a fungicide seed treatment to control seed-borne diseases.
  3. Optimum seeding rates are between 1.2 and 1.6 million seeds/acre. For drills with 7.5-inch row spacing, this is about 18 to 24 seeds per foot of row. When wheat is planted on time, the actual seeding rate has little effect on yield, but high seeding rates (above 30 seeds per foot of row) increase lodging and risk of severe powdery mildew development next spring.
  4. Planting depth is critical for tiller development and winter survival. Plant seed 1.5 inches deep and make sure planting depth is uniform across the field. No-till wheat seeded into soybean stubble is ideal, but make sure the soybean residue is uniformly spread over the surface of the ground. Shallow planting is the main cause of low tiller numbers and poor winter survival due to heaving and freezing injuries. Remember, you cannot compensate for a poor planting job by planting more seeds; it just costs more money.
  5. Follow the Tri-State Fertilizer Recommendations for Corn, Soybeans, Wheat, and Alfalfa (https://agcrops.osu.edu/FertilityResources/tri-state_info).
  6. Apply 20 to 30 lb of actual nitrogen per acre at planting to promote fall tiller development. A soil test should be completed to determine phosphorus and potassium needs. Wheat requires more phosphorus than corn or soybean, and soil test levels should be maintained between 30-50 ppm (Mehlich-3 P) for optimum production (Table 1). Do not add phosphorus if soil test levels exceed 50 ppm.

Table 1. Wheat phosphorus recommendations from the Tri-State Fertilizer Recommendations for Corn, Soybeans, Wheat, and Alfalfa.

Table 1. Wheat phosphorus recommendations from the Tri-State Fertilizer Recommendations for Corn, Soybeans, Wheat, and Alfalfa.

Soil potassium should be maintained at levels of 100-130 and 120-170 ppm (Mehlich-3 K) on sandy soils (CEC < 5 meq/100 g) and loam/clay soils (CEC > 6 meq/100 g), respectively. If potassium levels are low, apply K2O fertilizer at planting, depending on soil CEC and yield potential (Table 2).

Table 2. Wheat potassium recommendations from the Tri-State Fertilizer Recommendations for Corn, Soybeans, Wheat, and Alfalfa.

Table 2. Wheat potassium recommendations from the Tri-State Fertilizer Recommendations for Corn, Soybeans, Wheat, and Alfalfa.

Soil pH should be between 6.3 and 7.0. In Ohio, limed soils usually have adequate calcium and magnesium.

Field Observations Thru July 14

Alfalfa

2nd cutting is well underway.  Potato leafhoppers are very active. If you haven’t cut yet, continue to monitor, where damage is increasing, cut as soon as weather permits.

Click here for alfalfa insect scouting calendar

Click here for more information on Potato Leafhopper

Corn

Our corn growth varies greatly throughout the county. Some fields are beginning to tassel and some field are at V8.

V12 to V13 – Six weeks after the plant emerges, V12 begins. Moisture or nutrient deficiencies may reduce the potential number of seeds, as well as the ear size, seriously. These two components of yield have key development during the period from V10 to V17. The length of time for the plant to develop through these stages affects harvestable yield.

Early maturity hybrids normally progress through these stages in less time and have smaller ears than later hybrids. Higher plant populations are needed for earlier hybrids to produce grain yield similar to normal-maturity hybrids in the adapted region. Cultivation of plants at this time will destroy some of the plant roots. Brace roots are developing from the fifth node and the first above-ground node.

V14 to V15 – Seven weeks after the plant emerges, V14 begins. The corn plant at V15 is only 12 to 15 days (around one to five V stages) away from R1 (silking). This vegetative stage is the most critical period of seed yield determination. The number of ovules that develop silks, and thus the number of kernels, is being determined. Any nutrient or moisture deficiency or injury (such as hail or insects) may seriously reduce the number of kernels that develop.

The tassel is near full size but not visible from the top of the leaf sheaths. Silks are just beginning to grow from the upper ears. Upper-ear shoot development has surpassed that of lower ear shoots. A new leaf stage can occur every one to two days.

Brace roots from the sixth leaf node are developing, and the permanent roots have continued to elongate and proliferate, eventually reaching a depth of about 5 to 8 feet and spreading several feet in all directions. In some hybrids, brace roots also will develop from the eighth and ninth leaf nodes or even higher. Some corn plants in North Dakota may only develop 16 leaves.

Critical corn growth stages

Table 5. Postemergence Herbicides in Corn – Grasses

Table 6. Postemergence Herbicides in Corn – Broadleaves

Soybeans

Soybeans are starting to look a little bit better, however, there are still a lot of “yellow” beans throughout the county.  Two possible reasons are Yellow Flash and Soybean Cyst Nematode.  Other possibilities are seedling diseases and water-logged roots, more information on these topics next week.

After planting, the second biggest challenge we face is timely weed control.  If you haven’t already made a postemergence application, it might be time to check your fields.  Most beans (and weeds) are at stage that might warrant an application.  The links below will contain OSU Herbicide rating for postemergence applications.

Soybean Postemergence Weed Control – Grasses

Soybean Postemergence Weed Control – Broadleaves

Soybean Growth & Development – R1: Beginning Bloom

 

  • Open flower at any node on the main stem
  • Flowering begins at 3rd to 6th node (V6 to V10 stage)
  • Flowering period is 3 to 4 weeks
    –Begins ~6 to 8 weeks after emergence
    – Peaks R2 to R3; ends ~R5
  • Vertical root growth rates increase rapidly
    – As much as 1.3 to 3.2 in/day

Wheat

Wheat harvest has come to an end and most of the straw is in the barn.  From what I hear, wheat yields were pretty good with little to no disease issues.

If you removed the straw, remember to account for the additional fertilizer removal when planning for fertilizer needs next year.  Read more here.

Double crop beans have been, or are being planted now.  Click here for the Double Crop Soybean Production Guidelines from Dr. Laura Lindsey.

Misc. – Something you don’t see everyday.

I can honestly say that I have never seen one of these before! Click on the picture to see the video. If you know what it is, put your answer in the comment section.  Be sure to check back next week for the answer!

… AND THE ANSWER IS – Horsehair Worm

https://entomology.ca.uky.edu/ef613

County Rainfall Update

Corn Water Requirements

Soybean Water Requirements

Nutrient Value of Wheat Straw

Wheat harvest is wrapping up and a lot of straw has been bailed this week.  If you are bailing straw, remember to account for the additional fertilizer removal when planning for fertilizer needs next year. Each bushel of wheat removes .5 lbs of P2O5 and .25 lbs K2O.  So 100 bushel/acre of wheat removes 50 lbs of P2O5 and 25 lbs K2O.  The following article summarizes the value of the additional nutrients removed in the straw.

Before removing straw from the field, it is important to understand the nutrient value. Though we have seen some softening of the 2022 fertilizer prices, P and K fertilizer prices remain higher than normal. The nutrient value of wheat straw is influenced by several factors including weather, variety, and cultural practices. Thus, the most accurate values require sending a sample of the straw to an analytical laboratory. However, “book values” can be used to estimate the nutrient value of wheat straw. In previous newsletters, we reported that typically a ton of wheat straw contains approximately 11 pounds of N, 3.7 pounds of P2O5, and 29 pounds of K2O. According to June 2023 fertilizer prices (Source: DTN Fertilizer Price Index: Ohio) and nutrient removal “book values”, one ton of wheat straw would remove N, P, K valuing approximately $25.13 ($16.55 of P2O5 & K2O).

Although N adds value, we do not give it an economic value in the form of fertilizer (as seen in Table 1). Within straw, N is in an organic form and will not immediately be available for plant uptake. The organic-N will need to be converted by microorganisms to ammonium-N (an inorganic form) before it is available for plant uptake – a process called mineralization.  The rate of which mineralization occurs depends on the amount of carbon (C) and N in the straw (C:N ratio). The USDA reports a C:N ratio of 80:1 for wheat straw which means there are 80 units of C for every unit of N. Mineralization rapidly occurs when the C:N ratio is ≤ 20:1. At a C:N ratio of 80:1, mineralization will be much slower. (For comparison, corn stover is reported to have a C:N ratio of 57:1.) Rate of mineralization is also influenced by soil moisture and temperature. Since mineralization is a microbial-driven process, mineralization will be slowed (halted) in the winter when temperatures are cold. Thus, no N credit (i.e., value) is given for wheat straw since it is not known when the N will mineralize and become available to the following crop.

In addition to N, removal of straw does lower soil K levels. If straw is removed after heavy rainfall, some of the K may have leached out of the straw, lowering the nutrient value. However, a soil test should be done to accurately estimate nutrient availability for future crops. Besides providing nutrients, straw has value as organic matter, but it is difficult to determine the dollar value for it.

Field Observations Thru July 7

Alfalfa

Recent weather has delayed 2nd cutting in many fields.  Potato leafhoppers are very active.  Continue to monitor, where damage is increasing, cut as soon as weather permits.

Click here for alfalfa insect scouting calendar

Click here for more information on Potato Leafhopper

Corn

Plenty of moisture and some welcome warm weather – What a difference a week makes!

Warmer weather has slowed slug activity and the rapid corn growth is helping these plants escape (outgrow) this damage.

Our corn growth varies greatly throughout the county.  Most of the county is between V6 and V12. However, there are some fields at V12 and beyond.

V10 to V11 – The corn plant begins a steady and rapid increase in nutrient and dry-matter accumulation. The time between the appearance of new leaves is shortened, with a new leaf appearing every two to three days.  Demand for soil nutrients and water are relatively high to meet the needs of the increased growth rate. Moisture and nutrient deficiencies at this stage will influence the growth and development of the ears markedly. Fertilizer, especially phosphorus and potassium, is needed near the roots, which do not move appreciable distances in most soils. Dry soils also may make needed nutrients less available.

I have received a few questions about postemergence herbicide applications.  Click the links below for OSU Postemergence Herbicide Ratings.

Table 5. Postemergence Herbicides in Corn – Grasses

Table 6. Postemergence Herbicides in Corn – Broadleaves

Soybeans

Ok, many soybean fields just don’t look good, especially for this time of year.  While scouting your bean fields, check for seedling diseases and water-logged roots.

Warmer weather has slowed slug activity however beans are still growing slowly and may not be able to outgrow the feeding yet – Continue to monitor your bean fields for slug feeding.

Click here for slug information

Our Soybean  growth varies throughout the county.  Most of the county is between V3 and V6. However, there are some fields at and approaching R1.

V3 through V6 – The third trifoliolate (V3) stage takes place when three trifoliolates are unrolled. In case of damage to the growing point, axillary buds permit the plants to compensate for yield or final productivity.  The unrolling of six trifoliolates indicates the V6 stage. The root system continues to grow, even expanding across a 30-inch row spacing.  The V growth stages continue as long as a plant continues to produce trifoliolates. Determinate soybean plants complete most of their vegetative growth when flowering begins. Indeterminate plants produce trifoliolates until the beginning of the seed formation stage (late reproductive period).

Wheat

When, When, When will the wheat be ready??  Wheat harvest is just getting started.  A little sunshine and continued warm weather would certainly speed up the process.

Planning on planting beans after wheat? 

Click here for the Double Crop Soybean Production Guidelines from Dr. Laura Lindsey.

Click here to view herbicide restrictions prior to planting.  Table 23 from the Ohio Weed Control guide lists these restrictions.

Misc. – Something you don’t see everyday.

I can honestly say that I have never seen one of these before! Click on the picture to see the video. If you know what it is, put your answer in the comment section.  Be sure to check back next week for the answer!

County Rainfall Update

 

Field Observations Thru June 30

Alfalfa

The time for 2nd cutting is getting closer, for some fields 2nd cutting has happened.  Continue to monitor fields for potato leafhopper.

Click here for alfalfa insect scouting calendar

Click here for more information on Potato Leafhopper

Corn

Our corn growth varies greatly throughout the county.  Most of the county is between V2 and V6. However, there are some fields at V8 and beyond.

Click here for more information on the V3 – V4 growth stage

Click here for more information on the V5 – V6 growth stage

If you  haven’t scouted your fields lately, check them now for slugs.  Slugs have been very active this year, even when we had warmer temps.  I know several fields throughout the county that have been treated.

Click here for slug information

Beans

Beans just aren’t looking very good, for a variety of reasons – emergence problems, stand counts, too much water, not enough rain, SLUGS (!), poor root development, etc.  Make sure you are scouting your fields now to determine plant health.  A 4 year comparison of Ohio eFields on-farm research has shown that soybean plant populations as low as 80,000 plants per acre can produce yield equal to or greater than plant populations of 120,000 and 160,000.

Click here to see research summary.

As I mentioned above in the corn section, if you  haven’t scouted your fields lately, check them now for slugs.  Slugs have been very active this year, even when we had warmer temps.  I know several fields throughout the county that have been treated.

Click here for slug information

Wheat

Wheat maturity is delayed a bit this year.  Mother nature, growth regulator applications or fungicide applications all could play a part in this.    If you are planning on double-crop soybeans remember to pay close attention to herbicide restrictions prior to planting.  Table 23 from the Ohio Weed Control guide lists these restrictions.

County Rainfall Update

Field Observations Thru May 26

Alfalfa

Most of our first cutting is complete.  If you have not mowed yet continue to monitor for alfalfa weevil.  As regrowth starts begin to monitor for potato leafhopper.

Corn

What a difference a week makes.  Most of our corn is now planted and about 50% has emerged.

 

Soil Crusting

Soil crusting is still an issue.  Continue to scout for emergence problems.  A few fields saw a return of the rotary hoe to help break the crust and aid in crop emergence.

Beans

Like corn, bean planting is coming to an end.  Soil crusting is also an issue in many of our bean fields. Continue to scout these fields for emergence problems.  Read more here.

Slugs

Slug damage was a problem early in a few fields.  The forecasted warm and dry weather should help to eliminate this problem.

 

Wheat

Scout for disease and insects:

Cereal Leaf Beetle Scouting Information

Powdery Mildew Scouting information

Head Scab Scouting Information

Most of our wheat is nearing a time when a decision must be made.  All of the wheat fields that I have looked at are showing no signs of disease pressure.  Here are some factors to consider

  1. No existing disease pressure
  2. The head scab forecast system is showing a very low chance of scab
  3. Fungicide cost can range from $12 – $18/acre plus application charges
  4. New crop wheat price is hovering around $6.20/bushel
  5. The 6 – 10 day precipitation outlook is for below normal rainfall and mild temperatures.

READ MORE HERE