Tuesday Afternoon Comments (3/28) Corn futures traded slightly higher today on short-covering in front of Friday’s reports. As of midday, funds were estimated to have bought approximately 2,000 contracts of corn. Friday will bring the March 31st Prospective Plantings and Grain Stocks reports. The average trade guesses call for corn acres at 90.9 mln. and corn inventories as of March 1st at 8.543 bln. bu. Although NASS’s weekly crop progress reports don’t start until next Monday, individual state reports yesterday afternoon showed Texas farmers ahead of their average planting pace with 45% of their corn in the ground. Corn in Louisiana is 80% planted versus a 5-year average of 48%, and progress in Mississippi is at 30% versus 4% last year. On Monday, Georgia confirmed it’s first-ever case of bird flu in commercial poultry per their agriculture department. Officials in the southern producing states are limiting trade in an attempt to stop further outbreak. In South America, rains are expected across much of Brazil this week which should set up their 2nd corn crop quite nicely. Rains are also expected in Argentina where less than 10% of the Argentine corn has been harvested. In addition, reports are circulating that Mexican officials continue to meet with trade representatives from South America to discuss options for sourcing corn as concerns increase regarding deteriorating relations with the U.S. and potential changes to NAFTA. Most of Illinois, Iowa and Wisconsin have had a drier than average March, despite recent rains. This morning’s 7 day expected rainfall maps show heavy rain for most of the dry areas of Oklahoma, Kansas and Nebraska with the northern parts of the Midwest remaining on the dry side. Temperatures are expected to run near to slightly above average.
Soybean futures started the day firmer and were able to end the session marginally higher on short-covering. This was the first time bean futures have closed higher since March 21st. Soybeans have been getting into oversold territory and are not far from testing the November low at $9.68. Friday will bring the March 31st Prospective Plantings and Grain Stocks reports. The average trade guesses call for soybean acres at 88.3 mln. and bean inventories as of March 1st at 1.676 bln. bu. Weather in South America continues to be mostly favorable. Safras & Mercado estimate the Brazilian bean harvest at 70% complete, as of March 24th, which is slightly ahead of both last year and the five year average pace. The Argentine bean harvest is just beginning, with about 2% of the crop cut. Rains are expected in Argentina and will likely delay harvest there but traders at this point are not concerned that producers will fall behind. Farmer selling in South America has picked up recently as their bean harvest wraps up and Brazilian producers have enjoyed a favorable shift in currency terms.
Comments from Mid-Co Commodities
Have a good & safe night!
When you don't give up, you can not fail. Unknown
E-mail Delivery Sheets: If you would like to receive your grain delivery sheets by e-mail, please let us know. We can do that.
ACH Payments are now available. Call for details or to sign up.