7/12/19
Cover Crops and Creep
By Jacob Horstman, Nutritional Consultant

As we start yet another month, we have one big topic that we need to talk about and that is the changing of the date to harvest cover crops that were planted on prevent plant acres. Not only was the date changed but the ways that the crops themselves can be harvested. This year producers will be allowed to graze, bale and even chop their forages as early as September 1st. Changing the date from November 1st to September 1st will allow producers to put up better quality forages, as well as not have to fight the snow that Mother Nature is going to provide us with. With the governing body of crop insurance allowing producers to chop the crop put in on PP ground, producers that were unable to plant corn to harvest for corn silage are now allowed to harvest some sort of silage. Hopefully producers will be able to get those crops put up in a timely manner and in good quality, whether they are baling or chopping the crops.

In other news we are nearing or, in some cases, in the heart of creep season. In my opinion, creep feed is a love-hate relationship for most producers. Either they do it faithfully every year or they never do. I believe that all producers should put a pencil to it and see if it pays for them to creep feed in their operation. If they are getting more out of it then what they are putting in to it, then there is no reason that they shouldn’t be creep feeding. Come fall, more pounds will mean more money. If anyone has any questions regard what to plant for feed or questions about creep, feel free to give Brooke Brunsvig or me a call.

July WASDE Report
By Phil Madsen, Location Manager, Salem

 

 

Thursday’s WASDE report came out as an initially bearish report. The USDA raised US ending stocks for both the 18/19 and 19/20 marketing years. The main cause for higher stocks came from the demand side and due to projected less exports for 18/19 and a smaller amount of domestic feed/seed. The export change seems fair, with the US export business taking a hit with an extremely strong Midwest corn end user basis price. Although, after an initial bearish reaction corn futures were able to close $.09 high to sit at $4.44 Sep ’19 futures. A good reaction to a bearish report shows that the trade is already anticipating the US will have to decrease both acres and yield (both were unchanged from the June quarterly stocks report). Regardless of what happens with futures, basis levels have been screaming higher and will likely remain that way until price reaches a point that obtains meaningful producer selling.

The soybean numbers weren’t earth shattering either off the June quarterly stocks report. The projected yield was kept the same at 80 million acres and yield was dropped to 48.5 bu/acre. Even with these production numbers, projected ending stocks are still historically large. While there isn’t any worry about soybean supply yet, the yield will be important to watch heading into fall. Many beans were planted late and, with a production hit, we could return carryout back to levels that would increase volatility. Soybean basis has been slowly improving throughout the summer. With cash values climbing above $8.00 along with the hot/humid weather causing some beans to hit the road, I’d expect minimal basis movement for the nearby future.