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Highlights, Dollar Index, Broilers & Ethanol, Markets & Rain Days Update 9/22/22

Highlights


Carrol County, West Central Iowa Yield Report:

I took a field of corn out. Average 235 dry. It was green snap and Goosenecked bad from July 5 storm. Slow going, but very happy with the yield.

Thanks, Dan.

Clark County, West Central Ohio where the weather has been very good most of the year:

Early maturity beans on several farms running 62 to 67 bushels, about the same as full season beans. A 60+ year old neighbor thinks his corn and beans will be the best yielding crops he ever had.

Thanks, Bob.

McPherson County, a little east of Central Kansas:

Just finished corn harvest, turned out much better than expected. Basis here is 80 over (15 over a year ago, 30 under two years ago). A lot of demand coming from Western Kansas feedlots. Early rumors were much below par corn in Western Kansas. Hearing rumors of +$1.80 (basis) farther west.

The railroad unions started voting yesterday. The approval of the tentative agreement is not going to be a cake-walk. There is a distinct possibility, according to union members, the agreement will not be approved.

The Federal Reserve raised interest rates 75 basis points (¾%) yesterday afternoon and issued this statement: The committee is strongly committed to bringing inflation back to its 2% target. This was the third consecutive increase of 75 basis points and clearly, there are more to come given inflation is 6+% above the Fed’s inflation target. The Fed also said it will remove $90 billion dollars from the money supply this month. After adding 180 billion or more dollars every month since 2008, removing money from the money supply is a rather drastic step. Analysts who predict the exchange rate of the dollar has about topped-out have no idea what they are talking about. We haven’t seen anything yet as far a strong dollar.

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