Crop Conditions

March was a warm month and considerable amount of projects and field work were underway. Corn planting began last week with considerable progress from Friday to Sunday. Field conditions are dry and the soil conditions are close to ideal. However, the short-term forecast is cooler with some rain which is welcome. Strong winds most days have made it tricky for spraying and burning.

Grain prices attempt to move higher, then fall back after slight progress. Since mid-January, corn has been somewhat range-bound in the lower $4’s. Cash bids for beans have traded mostly $10.90 to $11.50. A year ago corn was $7.00 and beans were in the upper $14’s. Traders continue to hold very short positions in both corn and beans. With production risk on the table for the next several months (at least), one would think they would lighten up on their short positions. This would likely have a significant influence on prices.

Land values have continued to trade fairly steady. There have been numerous examples of strong sale outcomes. April and May are typically the slowest months for land transaction volume.