Madelia	Corn	Soybeans
Change	Bid	Change	Bid
May 12	10.50	6.48	-33.00	13.60
June 12	10.50	6.48	-33.00	13.60
July 12	10.50	6.48	-33.00	13.60
August 12	10.50	6.44	-25.00	13.12
October 12	8.75	4.99	-18.25	12.24
November 12	8.75	4.99	N/A	N/A
December 12	8.75	5.01	N/A	N/A
January 13	7.25	4.99	N/A	N/A

2011 Grain Marketing Update

Published On:11/4/2011
Author:Ryan Brandts and Brett Annexstad
Categories:Grain, Admin

With harvest just around the corner and potential yield prospects coming in on both sides of expectations, the market volatility has remained extremely high. During the fall of 2009 we were faced with $3.00 corn out of the field, $4.00 corn out of the field last fall, and the potential for $7.00 cash corn out of the field this fall! With the potential record profitability we believe it’s extremely important to capitalize on these profits and make sure you have a marketing plan in place to continue capturing this profitability in the years to come.

The USDA just released its September supply and demand report. The USDA dropped our national corn yield 4.9 bushels from 153 to 148.1 bushels per acre. This reflected yield reductions of 9 bpa in Illinois, 10 bpa in Iowa, and a 6 bpa reduction in Nebraska. However, there was some demand destruction showing up already as the USDA reduced both exports and ethanol usage by 100 million bushels each, and cut feed usage an additional 200 million bushels to a total reduction of 400 million bushels. The USDA actually raised soybean yields from 41.4 bushels to 41.8 bushels per acre, but ending stocks only rose 10 million bushels because of the 10 million bushel increase in exports.

With the current market values we have been encouraging producers to take a look at making some sales for the 2012 crop. As we continue to lock in fertilizer for the 2012 crop we believe it’s extremely important to lock in these prices to cover the fertilizer that’s been purchased as it is still unknown how much demand destruction has taken place or the size of the crop in the field.

With all these uncertainties we continue to encourage producers to proactively follow your marketing plan. We would rather see you make proactive sales based on your profitability versus reactive sales due to market volatility. If you have any marketing questions please feel free to give either of us a call and we’d be happy to sit down with you to review your questions or concerns. We hope everyone has a safe and productive fall!