As harvest finishes with record yields across the Midwest, corn prices fell below $3.40. However for the week it was nearly unchanged. Many farmers have struggled to sell at profitable levels, and while higher than average yields help offset lower prices some, it hasn’t been enough. Also contributing to lower prices, funds continue to hold large short positions with little incentive to adjust.
Beans also had average or above average yields throughout the Midwest, but beans have been high all year long in relation to corn prices, which has allowed for profitable levels for most farmers. This has eased the sting of low corn prices for many farmers. Looking forward, South American weather forecasts have been favorable, but we are nearing the part of the growing year in which every new forecast can drastically change the market direction.
Basis values are increasing throughout the Midwest for both corn and beans.