Jon grew up raising corn and soybeans on a farm near Beatrice, NE. Upon graduation from The University of Nebraska in Lincoln, he became a grain merchandiser and has been trading corn, soybeans and other grains for the last 25 years, building relationships with end-users in the process. After successfully marketing his father’s grain and getting his MBA, 15 years ago he started helping farmer clients market their grain based upon his principals of farmer education, reducing risk, understanding storage potential and using basis strategy to maximize individual farm operation profits. A big believer in farmer education of grain marketing, Jon writes a weekly commentary to farmers interested in learning more and growing their farm operations. Reach out to Jon at jon@schevegrain.com or at schevegrain.com.

Latest Stories
This week the corn and bean markets were dominated by upcoming weather uncertainty and Friday’s Supreme Court ruling against the ethanol industry and potentially the entire renewable fuels industry.
Corn and beans continue trading within tight ranges. Yield estimates seem less certain than usual for this time of year. Therefore, a sideways market may be likely until the September USDA report is released.
This week the USDA decreased the 2020 corn carryout, which lowered the stock to use ratio (i.e., the total usage compared to total production) to 2012 marketing year levels.
The USDA report found an additional 246 million bushels to add to the production side of the balance sheets.
In 12 of the last 15 years December corn futures have had a pullback in August or September. This seasonal trend is usually due to several factors.
Both July and December corn futures closed higher this week compared to the end of last week and are still at or above levels from 3 weeks ago.
New Crop Futures Prices Dry weather concerns in the Dakotas and possible ridging in the western corn belt has pushed some risk premium into the markets. December corn closed at $5.91, up 91 cents in 6 trading days.
Corn demand from China has increased dramatically over the last few months causing corn to rally $2/bu from August lows. What is causing this?
While temperatures were nearing normal last week on our farm in southeast Nebraska, a cold front has pushed in and put a stop to any planting progress.
This week’s biggest story was the inverse spread between the May and July contracts. Generally, inverses indicate the market is short on supply.