Farm Focus · 30/06/2020  · • Wheat planted area was down 0.405 million vs. the March report....

Farm FocusTuesday June 30, 2020

Call Dan Cowger at 866-438-1065

Or E-mail

dancowger@heartlandfarmpartners.com

Today’s Prices

Grains: Price Change

Corn - July 2020 3.39 0.12

Corn - December 2020 3.51 0.16

Soybeans - July 2020 8.84 0.18

Soybeans - November 2020 8.82 0.21

KC Wheat - July 2020 4.36 0.07

Mpls Wheat - July 2020 5.09 0.12

Outside Markets: Price Change

Crude Oil - August 2020 39.37 (0.33)

Ethanol - July 2020 1.21 0.05

Gold - July 2020 1,791 16.00

U.S. Dollar Index 97.35 (0.16)

Dow Jones Industrials 25,623 28

Live Cattle - August 2020 96.28 (0.20)

Feeder Cattle - August 2020 132.85 (0.65)

Lean Hogs - August 2020 49.03 0.58

Grain Market News

• Grains prices were sharply higher on smaller than expected acreage.

• USDA shocked the trade with corn acres coming in at 92.006 million.

• Corn acres were 3.2 million below expectations and down 4.98 from March.

• Most expected that lower corn acres would be converted to larger bean acres.

• But the soybean acreage was up just 0.315 million vs. March intentions.

• Wheat planted area was down 0.405 million vs. the March report.

• The smaller acres likely a result of higher PP, more CRP and specialty crops.

• Quarterly Grain Stocks came in above trade expectations.

• Compared to expectations, corn stocks were 234 mb larger, bean stocks were

5 mb larger and wheat stocks were 65 mb larger.

• Lost demand due to the coronavirus likely resulted in the larger grain stocks.

U.S. Corn Crop Condition

U.S. Corn: Supply & Demand

U.S. Soybeans: Supply & Demand

U.S. Wheat: Supply & Demand

Grain Market News

• Corn and soybean crop conditions both improved by 1% vs. last week.

• Corn improved by 1% to 73% G/E vs. 72% last week.

• Soybeans improved by 1% to 71% G/E vs. 70% last week.

• Winter wheat held steady at 52% G/E.

• Spring wheat declined by 6%, from 75% down to 69% G/E.

• Current crop conditions and soil moisture are quite good.

• Forecasts indicate a warmer and drier trend developing later this week

• Some forecasts indicate that this trend could last through much of July.

• Current soil moisture should support good crops for at least a week or two.

• The concern would be if a longer-lasting warm/dry pattern would develop.

U.S. Corn Crop Condition

U.S. Soybean Crop Condition

High Temperatures: 6-29-20

24-Hour Observed Precipitation

30-Day Precipitation - % of Normal

7-Day Precipitation Forecast

6-10 and 8-14 Day Forecast

Corn Chart

Soybean Chart

Wheat Chart

Grain Marketing RecommendationsCorn Beans Wheat

Current Position Current Position Current Position

2019 Crop:

2020 Crop:

97% of production sold.

40% of insured bushels sold.

2019 Crop:

2020 Crop:

95% of production sold.

50% of insured bushels sold.

2019 Crop:

2020 Crop:

100% of production sold.

50% of insured bushels sold.

Corn Sales Recommendations Bean Sales Recommendations Wheat Sales Recommendations

Sell 30% of 2020 insured bushels if CZ20 hits $4.10. None None

Options Recommendations Options Recommendations Options Recommendations

Long calls against 100% of previous sales. Long calls against 100% of previous sales. Long calls against 100% of previous sales.

Questions or Comments

Call Dan Cowger

866-438-1065

Or E-mail

dancowger@heartlandfarmpartners.com