AM Comments 05/28/14
Wednesday, May 28, 2014, 8:05 AM
Submitted by: Dustin Weiner
A favorable weather outlook and follow through from yesterday afternoon’s planting progress report has both corn and wheat futures lower this morning while beans are higher. Why are beans higher? Well overall it is hard to find a fundamental cause… We could just be seeing a small bounce after yesterday’s ugly day (down over 25c). The more likely reason: while most of us were sleeping last night (not my 2-yr old for some reason) the Chinese Dalian soybean futures markets were higher. This combined with tight old crop bean supplies can be blamed/credited for the higher move this morning.
When looking at harvest prices, if you take two big steps back you can see… Good acres. Good planting progress. Good short-term weather forecasts. And perhaps most importantly - more and more weatherpersons jumping on the El Nino bandwagon which would bring plenty of precip and normal (not above normal) temps to the corn belt this July/August. As long as most of those above sentence fragments remain true it could be hard to entice new money into our markets, at least when looking at the supply side of the equation…
Corn 1 to 2 cents lower
Soybeans 3 to 7 cents higher
Have a great day!