Podcast Summary
Midwest agriculture scene: Central Illinois had record-breaking corn and bean yields, but livestock markets took a hit due to economic concerns and potential decreased demand for the upcoming holiday weekend. Governor Tim Walz, with agricultural background, was announced as a vice presidential candidate nominee for the Democrats.
This week's Back Roads of Illinois featured a discussion on the Midwest agriculture scene, with a focus on the crop tour and current market conditions. Central Illinois had record-breaking corn and bean yields, with 204 bushels per acre for corn and 142.9 by pod count for beans. However, the livestock markets took a hit due to economic concerns and potential decreased demand for the upcoming holiday weekend. Governor Tim Walz of Minnesota was announced as a vice presidential candidate nominee for the Democrats, bringing agricultural background and support for the industry to the table. Brady Hawk from Advanced Trading joined the conversation to discuss crop conditions in the Central US and Kansas. The crop tour has been a busy week for the industry, with markets closely watching the trade situation.
Crop conditions in Western Kansas: Above-normal precipitation in Western Kansas has led to good crop growth overall, but variations in rainfall and irrigation could impact pod fill and test weights.
The crop situation in Western Kansas is generally good, with some areas benefiting from timely rains and others relying on stored moisture. The region has been fortunate to receive above-normal precipitation this year, but there are significant variations in rainfall across the state and the western corn belt. The pollination process went well in the irrigated areas of Western Kansas due to favorable conditions, and the grain supply is expected to be sufficient for the local harvest needs. However, the warmer weather and potential dryness could impact pod fill and test weights, especially in areas with less irrigation and more reliance on rainfall. The western part of the state grows fewer beans, but the current weather conditions could still have an effect on those crops. Overall, there is significant variability in crop conditions across the region, with some areas experiencing excellent growth and others facing challenges.
Cattle market focus: Focus shifts to demand and marketing decisions for cattle producers, with the upcoming cattle on feed report closely watched for potential bullish or bearish signals. Consumer buying habits during grilling season impact lean beef market and beef cut-outs.
Despite a decent crop confirmed by the crop tours, the focus is now on demand and marketing decisions for producers. The cattle market has been underperforming, and the upcoming cattle on feed report at 2 PM will be closely watched. While a higher-than-expected placement number could be bullish, it may not be as significant as it seems when adjusted for additional marketing days. The cattle business should keep an eye on consumer buying habits, especially during the grilling season, as the lean beef market has been supporting beef cut-outs. The concern is that a potential downturn in the cattle market could follow the trend seen in the grains. However, the current situation is not yet burdensome, and the industry is managing to meet consumer demand with larger carcasses and fewer animals.
Fall marketing plan: Producers and farmers should plan their harvests and pricing decisions before the combines start rolling, having a fall marketing plan in place can help secure good prices historically and prevent regrets in hindsight.
Farmers and producers should not wait until the last minute to make important decisions regarding their harvests and pricing. Brady from Advanced Trading emphasized the importance of having a fall marketing plan in place before the combines start rolling. He also advised that, even though prices for cattle and grains have seen recent drops, historically good levels still exist and having a floor price is preferable to regretting the lack of one in hindsight. Brady and Caesar discussed their shared excitement for the upcoming football season and the associated beef consumption. For those interested in following Brady's insights, he streams live every day at 9 a.m. on YouTube and can be reached through his advanced trading website.
Illinois commodity markets: Illinois commodity markets experienced significant losses in corn, soybean, wheat, cattle futures, and lean hogs, while crude oil saw a slight increase in price.
Commodity markets in Illinois saw significant losses in corn, soybean, and wheat futures, with prices dropping between 3 to 9 cents. Cattle futures and lean hogs also experienced declines, with prices dropping between 8 to 10 cents. The only exception was crude oil, which saw a slight increase in price, up 8 to 7 cents per barrel. The corn market remained unchanged. Brad Hawk from Advanced Trading provided this market update on Back Roads of Illinois, a podcast where we delve into the lesser-known aspects of Illinois agriculture. If you missed our conversation with Brad, you can catch it on YouTube or wherever you get your podcasts. Stay tuned for more insights on the agricultural industry from Back Roads of Illinois. I'm Cesar Delgado, wishing you a good weekend.