Happy May Day or at least at the time of this writing. The Holiday has its origins in ancient European Times marking the beginning of Summer. Believe it or not, traditions and celebrations in earlier times had ties to agriculture. Romans engaged in celebrations during which a bundle of wheat was carried into a shrine whereby a devotion was likely made to Ceres, the Goddess of Grain. Later the Gaels celebrated the holiday mainly focused on the symbolic use of fire to bless cattle and other livestock as they were moved to summer pastures. I know what you are thinking, come for the market information, stay for the ancient holiday traditions.

If I have not lost you yet, this week our trade area received some meaningful precipitation. It was much needed in the grand scheme, however if we were to miss out on the next couple of systems that are forecasted for next week, I do not think would hurt too many of our feelings at this point. On Monday afternoon US planting progress was reported to be 27% complete on Corn and 18% complete on Soybeans, which is well ahead of the 5-year average for both crops as well as a year ago. Not many wheels are expected to turn this week with the wet weather and potential rain systems on tap. However, it is still a bit too early to be concerned about preventive planting just yet or to provide support to the market. If progress is not 50-60% complete by May 15, then the market will have a story to trade.

On Tuesday, the US Treasury and EPA published guidance with the updated GREET (Greenhouse Gases, Regulated Emissions and Energy Use in Transportation) Model for producers of SAF (Sustainable Aviation Fuel) to receive the 40BSAF tax credit for producing ethanol and/or soy oil from feedstocks in which Climate Smart Agriculture Practices (CSA) are utilized. However, the Government agencies delayed the announcement of the 45Z tax credit requirements. At this point it is indefinite when that guidance could be released, but implementation is expected in early 2025. The Clean Fuel Production 45Z tax credit encourages farmers to produce corn using all three practices of No Till, Cover Crops (which in this part of the country is common practice for many operations) as well as Enhanced Efficiency Fertilizers. At this point, it is unclear what hoops will need to be jumped through to achieve the required CAS certification. Once the red tape is sorted out it seems like this could be positive for Corn and Soybean markets longer term.

In the short-term soybeans were down sharply midweek from the lifting of the strike by Argentina’s Oilseed Workers Union. However, it appears they will likely again strike when the Senate takes up the legislation on labor reforms. Not long term bullish as they have supply of beans, meal, and soy oil. Supply always finds a way to where it is needed. Next meaningful headline and price maker for the row crops will be the May WASDE report next Friday, May 10^th. The market will get its initial look at 2024/25 Corn and Soybean balance sheets.

While we wait for fields to get fit again, do not hesitate to give your local CFC originator a call to discuss your marketing plans for old and new crop and to place offers. Once we get rolling again it’s easy to put marketing on the back burner during the time of year that usually provides the most pricing opportunities. Please stay safe and have a successful remaining spring season.

At the end of April, the energy markets took a deep loss after a larger-than-expected surge in U.S. crude oil stocks. The Department of Energy reported that crude inventories increased by 7.3 million barrels. Gasoline also saw a surprising jump in its stock by 344,000 barrels. Diesel experienced a smaller than expected draw, down 730,000 barrels. Adding to the selloff were ongoing peace talks in the Middle East and no surprises on interest rates from the Federal Government. Lastly, the large selloff in crude brought its value under $80 a barrel, which is the first time since the beginning of March. With that I would like to show you what the stations in Salem and Scotland offer.

Wow, how things can change in two weeks.  From dry to wet fields.  Now more than ever a good plan needs to be thought out.  Getting into fields that are too wet will be an issue.  From getting stuck to planting into muddy conditions, patience will be tested.  When getting fertilizer ordered for the fields left to spread, make sure you check for wet and trouble areas.  Getting into those fields too early that aren’t ready will cost everyone time and money.  Keeping your agronomist updated on soil conditions will be greatly appreciated. 

Regarding some of the corn and beans that are already in the ground, you may need to keep an eye on them for stand reductions.  The cold wet soil could have an impact on stand counts of corn and beans. 

When we get started planting again, side wall compaction will be an issue so keeping an eye on soil conditions will be a must.  I know it will be hard not to go full throttle but be aware of the soil conditions and threats of pushing the envelope when planting.

Also keep an eye on chemical needs in the field.  I am sure there will be an increased need for roundup and other burndown products to manage weed pressures in the fields. Starting with a good residual-based program is a must.   We have a chemical program that will fit your needs.  Your agronomist can help with those decisions.