PM Comments 4/21/15
Tuesday, April 21, 2015, 4:04 PM
Submitted by: Eric Kist
Corn followed up yesterday’s modest losses with another weak showing, closing 5 cents lower at 3.73 in the May futures. At the other end of the spectrum, soybeans followed corn down, reversing course from the last few trading sessions, and gave up a portion of yesterday’s gains. After steep losses early in the morning, beans did find a decent footing, and managed to close in the top end of today’s range, settling 2 cents lower at 9.75 ¼ in the nearby May futures.
Additional cases of bird flu being reported seems to have had the biggest impact on today’s trade, as the H5N2 bacteria strain has now been found in a large commercial egg-laying facility in northwest Iowa. An estimated 5.3 million hens will be culled from the operation in Osceola county in an attempt to curb the highly contagious virus. The impact on the corn and bean markets is seen in fear-based selling. With each additional outbreak of bird flu reported, traders are afraid that meal exports from the United States will be banned by importing nations, leading to reduced demand for US meal, and consequently increasing carryout numbers.
Beyond the bird flu, the only other topic of conversation as of late has been weather forecasts and planting progress. The majority of the Midwest is still drying out from recent rains, but forecasts for the upcoming week look favorable, and should allow corn planting to continue. Without a real bullish market input to provide direction, the corn and bean markets will continue to drift sideways/lower until we get further into the growing season.
Have a good night!