(Jamie) Welcome back to Farm Factor. Let’s join Duane and Derrick as they discuss the corn crop.
(Duane) Duane Toews, with you again on AGam in Kansas. And while at the Wichita Farm and Ranch Show Market Shootout IX with KFRM and the Wichita Farm and Ranch Show. Derrick Hermesch joined us. Opportunity to talk a little more in depth about corn as specifically Derrick and obviously we look at Fall harvest as it went very quickly for a lot of people. A lot of bushels out there it appears as well. (Derrick) There is and it does appear that bushels are growing, especially we’ve got some more news after today’s USDA report that was quite bearish for corn here in the short term and maybe affect the long term. But the corn market at this point in the year, you know we’ve been trading basically nowhere the last three to four months. It seems since we got off of our high spot there back in July and fell off as the problems of the Illinois and Indiana area appeared to be patched up somewhat by how the other areas of the corn belt have reacted getting good weather and on the fringes of the west and in Iowa and having really good yields. The key thing I think right now for corn producers as you look out here and wonder what to do there are a lot of areas where even though the corn price futures price is not moving in your favor, you have seen regional cash prices bases improve, in some areas very dramatically. There are positive bases, values in those troubled areas in Illinois and Indiana, but they have filtered out some, especially to the eastern part of the state of Kansas. Maybe not quite made it out to the west and central parts where we’ve had good harvest areas compared to historical. But there has been a good base improvement. There is bases improvement, I believe to definitely be taking advantage of right now at this juncture. And that is the key for producers to be looking at right now in my mind. (Duane) As far as we look at the corn market, you reference we’ve been sitting in a pretty sideways trend. Not really going anywhere, anywhere fast. Probably don’t see that changing anytime soon either, other than with this negative pressure from the recent crop report. (Derrick) The negative pressure very well might push a little bit further south outside of our trading range that we have been in for a while. Like I said, bases is your one thing to hang your hat on and definitely look at some opportunities as far as forecasting something better. Weather down the road very well may do it. And South American weather is always key especially when it comes to soybeans, but could affect corn prices as well. But for now, no, there is not anything really on the short term horizon that looks really great to be bringing anything spectacular or a whole lot of noise with it, other than we’ll see how ethanol reacts in all of this where we’ve had some stability, had some lower prices. Whether we…probably maybe not see ethanol expansion, but there has been talk of exporting ethanol to the likes of like China and so forth. Not that that’s something you should be getting too fired up about, but it could be something that grows a few more legs as we get down the road and still if we experience cheaper corn prices in general. (Duane) Our thanks to Derrick Hermesch for joining us from Wichita Farm and Ranch Show here on AGam in Kansas. Jamie back to you.
(Jamie) Thanks, Duane. Folks, it’s time to grab a cup of coffee, but don’t go far away – next is this week’s Kansas Soybean Update.