We need help!
Do you know of someone looking for a career working with ag producers and a passion for the markets? If so, we’d like to hear from them. AgWest is currently looking for a few good folks that can help service the growing demands from our farming partners. Currently we have the below openings:
- Broker & Broker Assistant at our Gretna and Beatrice, NE, Yuma, CO and Paola, KS locations
For more details and to submit an application, please click on the link below.
This will be the last week we recap the weekly harvest progress reports, as 2017 will basically be in the books by next Monday.
- CORN: As of last Monday, 83% of this year’s crop has been harvested, compared with 92% last year and 91% for the five-year average on that date.
- SOYBEANS: 93% of the U.S. bean crop has been harvested. This compares to 96% last year and 95% for the five-year average on that date.
New Lows In Corn
Corn has traded in one of the tightest annual ranges in many years. Coming off of the November WASDE reports, corn is now expanding on the annual trading range, but unfortunately the bottom side of the range is where the expansion is taking place. The idea of 2.5 billion bushels of ending stocks is more than the market can handle. Funds were already approaching a record short position and odds favor they built on that position this week. It is certainly a market where rallies need to be sold but there are a couple of looming questions: when will corn rally next and from what price level? Now that new lows have been cracked, the 2016 low at $3.14 becomes a line in the sand that may be possible.
As ugly as things feel, keep in mind that a near record short fund position makes for a lot of buying when they move into liquidation mode. These folks will likely hold tight to this profitable position until there is a catalyst that indicates the short side of the market is the wrong side. What could that catalyst possibly be? In the next few weeks, there is only one obvious possibility, and that would be weather issues developing in South America. Short of this possibility, the corn market could be a real grinder through the winter. How it unfolds is anyone’s guess but you must do your part and have appropriate sell orders in place to clean up the balance of your 2017 corn. Rallies must be sold!
Update Letters Coming
For those who receive electronic communications, you should have received our fall “Update” on Thursday. For those who receive U.S. mail, you should have your copy before the weekend…we can only hope! This week’s Friday Alert will be short due to the “Update” letter and next week’s may be limited as well due to Thanksgiving.