PM Comments 4/22/15
Wednesday, April 22, 2015, 4:04 PM
Submitted by: Eric Kist
Another round of red numbers materialized for the grain markets, as corn dropped half a cent, and soybeans dropped 5 cents during today’s trading session. The absence of a true bullish input is allowing grains to follow the path of least resistance, which is unfortunate for the producer who is holding onto large corn/bean stocks.
Early-season weather has allowed a decent start to planting, and as the Midwest continues to dry out over the next few days farmers will return to the field. Barring any extended cold spell or continued rainfall, the market does not have a reason to worry at this point in time. In the export arena U.S.-origin grain has nowhere to go, as South American and Ukrainian corn offers are well below U.S. prices, and the world’s soybean needs are being satisfied by South America. Soybean harvest in Argentina is firing up, and the Brazilian harvest is nearing completion. Thus, the soybean pipeline is full, and will allow South America to be the primary exporter of soybeans throughout the summer months.
As the news of additional cases of bird flu is being reported in America, foreign nations are responding by turning away U.S. poultry products. So far, the countries of China, South Korea, South Africa, and Mexico have placed bans on all U.S. poultry products until further notice.
Have a good night!