Corn harvest jumps +15% from the previous week and now stands at 46% complete. We are still running well behind our 5-year average of 65%, but we are quickly moving in the right direction. In fact many analysts think we will jump to over 75% complete by next Monday. The areas currently running the furthest behind are: ND 30% behind; IA 29% behind; WI 27% behind; SD 26% behind; MN 22% behind; NE 19% behind; and IL 13% behind.
I also though it was interesting to see MN harvested an entire 25% of their crop last week. I suppose based on the latest weather forecast the harvest will continue to gain steam. The bulls are now talking about the potential for a hard freeze in a few locations this weekend, so we will need to monitor the situation. They are also talking about the delayed planting in Brazil that could ultimately reduce their second-crop corn acres.
The bears on the other hand continue to believe the US crop is going to get BIGGER...not smaller! There's also some talk amongst the bears about falling crude oil prices, as thoughts that continuing weakness in the energy sector could eventually weigh on US ethanol demand. Keep in mind, progress in Brazilian ethanol also took a step backwards on the recent presidential win by incumbent Dilma Rousseff. Remember: She is a huge fan of limiting and restricting the price of gasoline, at times at the expense of ethanol.