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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.

It discusses the highlights of last week’s USDA report and how limited wheat supply may help corn and bean prices in the next marketing year.

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.

On Thursday, the USDA decreased the estimated national corn yield more than the trade was expecting. In the last 15 years, only 4 had estimated final yields higher in the January report compared to August’s.

This week’s biggest story was the inverse spread between the May and July contracts. Generally, inverses indicate the market is short on supply.

The corn market wasn’t very exciting this week as the range in closing prices was only 12 cents. This was the smallest one-week trading range since late July.

Which USDA Reports Should Farmers Give Their Attention To?

The market is trying to determine what the upcoming harvest yields will be. Early reports where harvest has started south of I-80 are positive.

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.