Harvest Time

Fall Harvest is well underway.

The weather has been great and with the increased amount of heat this year, many of the crops are ready earlier than normal. Starting with dry beans, the yields have been average to above average for many operators. This coupled with high demand, has resulted in a great return. Soybean harvest is about half done at this point. Again, yields have been from average to above average. Soybeans prices are down from their highs but are still quite profitable today. Corn harvest has just gotten started. It is too early to tell how things are turning out but initial reports sound promising. Lastly, early sugar beet harvest started in mid-August. The yields then were in the mid 20 tons per acre. These are numbers that we typically do not see until late September. Current reports are showing fields coming off about 30 tons per acre. This seems to indicate that we are going to have the potential to set a record on tons per acre this year. Sugar prices are strong, and this should be a good year for our producers.

Crop prices overall remain strong. They are down from their mid-summer highs but are still quite profitable. The latest USDA report showed a higher than anticipated soybean inventory. This has created some headwinds for that market as demand from China has fallen off in recent weeks. The October report is being watched closely, as this will set the tone for prices for the rest of the fall.

The outlook right now looks very promising. There are some current market head winds with China not purchasing as much and an increase in soybean stocks. However, draught has taken its toll on parts of the country, and we will have to wait and see how that effects the markets. The trade is paying close attention to the energy markets, which would be supportive of our commodities.

Matthew D. Ross

Vice President