Monday Morning Comments (2/27) Good Morning. Grain prices are mixed with corn and beans trying to manage some small gains this morning while wheat is lower. Another month end comes around tomorrow, which also mean another first notice day. FND for March futures is tomorrow so keep an eye on March positions today, especially those on the long side. The USDA Ag Outlook forum wrapped up on Friday, which seemed to be perceived as a little on the negative side. Despite lower production numbers due to lower yield expectations for 17/18, ending stocks weren’t lowered much. Corn ending stocks for 17/18 were lowered by just 105 Mln. bu. to 2.215 Bln. Bean stocks were unchanged at 420 Mln. bu. Wheat stocks were adjusted lower to 905 Mln. bu., with stocks this year currently at 1.139 Bln. bu. The commitment of traders report on Friday showed corn funds got longer by 6800 contracts. The wheat funds continue to lighten their short position. They bought a net of 12,662 contracts and now are showing a net short position of 27,385 contracts. The bean funds are still big net longs, but did lower it by 16K. The outside markets are quiet as they await President Trump’s speech tomorrow night. The cattle on feed report on Friday showed the 3rd month in a row of big placements. Placements for January were 11% higher than a year ago. Plenty of cattle should be coming to market this summer. Export inspections are out today. The turn of the calendar on Wednesday means more talk of acreage with the prospective plantings report on March 31st. The trade is still looking for some 4 Mln. less corn acres, and some 3 to 5 Mln. more bean acres. Spring weather will likely play some role, but it is hard for the USDA to pick that up in March. The Argentina weather looks good for the next couple of weeks. Some harvest delay could be seen in Brazil due to heavy rains, but they are ahead of schedule so it shouldn’t be much of a problem in the near term. Bean yields are very good there. The spring price option for crop insurance is the average of the new crop prices for February, so that will wrap up as well tomorrow. With prices still well off their highs, it should be quiet times for the producer. However, March is considered one of the busier months for money needs, so we’ll see what gives.
Comments from Mid-Co Commodities
Have a good & safe day!
You can't go wrong doing the right thimg. Kevin Brown
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