AM Comments 4/16/15
Thursday, April 16, 2015, 8:04 AM
Submitted by: Eric Kist
The overnight markets traded both sides of yesterday’s close, and both corn and beans are unchanged as we head into the morning break before today’s trading session. Nearby futures for corn and beans have made decent gains over the past couple days, as funds have been covering their short positions.
Yesterday’s Soybean Crush report for March surprised the trade, as NOPA reported that the crush number for the month was a strong 163 million bushels—7.5 million bushels above the average trade estimate! Yesterday’s board action reflected the bullish report with good gains in both beans and soybean oil.
Also released yesterday was the EIA’s weekly ethanol production report. For the week prior, weekly corn grind was reduced, and production was lower by 12k barrels/day. Conversely, ethanol stocks increased week-over-week, signaling reduced demand. Despite this report, ethanol margins have been helped out recently from firming gasoline prices, as the price of crude oil has been rallying over the past couple weeks.
Weather continues to be the major input in the trade—wheat growing areas are receiving much-needed rains, and farmers across the corn belt have either begun planting, or are right on the cusp of getting started. There were reports of planters rolling in several parts of the state yesterday and today, although there were scattered showers that popped up in some areas. Forecasts call for more scattered storms over the next 6-10 days, but rainfall for the balance of the month is expected to be normal to below-normal, which gives hope of a good start to the growing season!
Corn: 1-2 lower
Beans: 1-2 lower
Have a good day!