Grain markets slowly trading higher on little news

The grain markets have been trading just a bit higher the past few weeks.  This after trading down to price levels that were not very attractive for many producers.  Last week there was some positive news on trade negotiations with Mexico and that helped keep the markets steady.  Corn was up 7-8 cents; soybeans were up 25 cents on old crop and 17 cents on new. Soft red wheat was the most positive up 25 cents for the week. This helped some as producers are finishing up soft red wheat harvest across Wisconsin. The southern and central parts of the state had yields that were average at best and had some issues with test weight and damage.  The disappointing thing on wheat is that discounts can be quite steep as the flour mills need to have high test weight wheat for good quality baking flour.  Most yields were in the 65-80 bushel range this year.

The markets will once again be watching trade and tariff talks this week along with the weather forecasts as many areas of the grain belt are starting to get dry in critical part of the growing season.  This week Friday will be the monthly USDA WASDE report.  We will be watching for changes in the balance sheet for new crop grains where acres and  yields might be adjusted.

With the small uptick in board prices the basis on corn and soybeans has trended a bit weaker.  Another item to be aware of is that cash soybeans are now being bid against the November 18 contract in most markets.  Many widened their basis some when rolling to the November.