AM Comments 3/27/15
Friday, March 27, 2015, 8:03 AM
Submitted by: Eric Kist
The overnights traded both sides of yesterday’s closing prices on decent volume, with corn and beans both slightly lower as we head into the morning break. Corn is up 5 cents so far for the week, while trading in a 12 cent range, and soybeans are lower by 4 cents for the week, trading in a 20 cent range. Modest support for corn has come from delayed planting in the southeastern U.S. and Delta region due to wetness, which may possibly lead to a chunk of acres being switched over to soybeans.
Acreage intentions is the hot topic in the market currently, as the trade is positioning itself ahead of the USDA’s Quarterly Stocks and Planting Intentions reports, due out this coming Tuesday. The range of estimates for corn acres goes from a low of 87 million acres to 89.9 million acres, with an average guess of 88.9 m/a. Soybean acreage estimates range from 83.1 – 88.0 million acres, with an average guess of 86 m/a. Actual seeded acres for 2014 were 90.6 m/a for corn and 83.7 m/a for beans, so it is clear that the market is expecting a shift in acres from corn to soybeans.
Outside markets are mostly lower this morning, as crude oil is giving back a portion of its gains for the week, equities are lower, and the dollar is mostly unchanged.
Corn – down 1-2 cents
Soybeans – down 3 cents