AM Comments 04/25/14
Friday, April 25, 2014, 8:04 AM
Submitted by: Dustin Weiner
The corn and soybean markets were both higher last night – it appears that the weather forecasts have turned a little wetter which is expected to delay corn planting (hence higher prices). Monday afternoon we will have another planting progress report which will likely show U.S. corn somewhere around 20% planted, which would be a little behind the average of 32% but nothing too concerning. Well… with next week’s forecast now looking wetter, it will be hard to gain ground on planting progress that week. This means the Monday after that could show us well behind the average which will start to approach 50%.
In other friendly news (friendly to prices) – tensions in the Black Sea are escalating once again, which is directly supporting wheat.
It is a little too early to talk about (let’s get the crop in the ground first) but El Nino chances keep moving up and up (which bring cool, wet weather to the US Midwest). The chart at the bottom of this email shows the probability for El Nino to show up this July/August/Sep – it looked only possible back in January but now it looks very likely. If realized, this would likely push corn and soybean yield forecasts higher. (link)
Corn 3 to 5 cents higher
Soybeans 7-10 cents higher (old crop), steady new crop
Have a great day!