PM Comments 4/20/15
Monday, April 20, 2015, 4:04 PM
Submitted by: Eric Kist
It was a mixed day of trading to start off the week, as nearby corn futures dropped 2 cents, and the nearby soybean contracts gained 8-9 cents on the day. Corn continued its recent trend of trading within a tight range, as the high and low trades over the past 2 week period are only 10 cents apart. Soybeans have been much more volatile, trading a 30 cent range during the same time period. Both commodities have rebounded from their recent lows of a week ago, and are currently near the top end of those recent ranges.
Soybeans found support today from news out of China, as the Chinese Central Bank has announced a stimulus measure in response to the country’s lower-than-expected GDP growth. Also, rumors of another trucker strike in Brazil may have triggered
some buying as well—however, if another strike does materialize, its impact is not expected to be nearly as significant as the previous strike in late February. Contrary to the earlier strike, shipping ports have enough beans on hand to meet needs for the
next several weeks, and the Brazilian harvest itself is nearly 90% complete.
Corn was supported by the strength in the soy complex and the crude oil market, but was not able to generate enough buying interest to close higher. After a solid start to the planting season last week, heavy rains across the state this past weekend will keep planters on the sideline for a while. Weather maps do look dry for the week, but below-normal temps will not speed up the drying-out process any. Internal reports pegged corn planting at anywhere from 5 – 50% complete throughout the state. In comparison, the weekly Planting Progress report was released this afternoon, and recorded Iowa as being 7% planted, compared to 2% a year ago, and 7% on average over the past 5 years. Nationally, corn planting is estimated to be 9% complete. A state-by-state summary from the USDA is shown below.
Have a good night!