AM Comments 4/28/15
Tuesday, April 28, 2015, 8:04 AM
Submitted by: Eric Kist
Both corn and beans are higher as we start our day, after trading mixed throughout the entire overnight session, with a fair number of contracts changing hands. Soybeans managed to extend yesterday’s rally, and have now gained 15 cents over the past two sessions, trading to a three-week high. Corn, on the other hand, has legged downward over the past few sessions, and have dropped 20 cents over the past week.
The popular opinion for the rally in soybeans suggests that funds were simply oversold, and have been covering their shorts. Expect rallies to be short-lived, however, as the long-term fundamental picture for both corn and soybeans remains bearish. Remaining at the forefront of traders’ attention, weather forecasts and planting progress will dictate the direction of the trade as we continue into the Spring season.
An updated weekly Crop Progress Report was released yesterday afternoon, and pegged corn planting nation-wide to be at 19%, versus 25% on average, and soybeans at 2% planting, versus 5% on average. Locally, it is estimated that Iowa is 14% planted, compared to the average of 24% in previous years. Although we are currently behind the average pace, the weather forecast for this week appears to be giving us an excellent window to make significant progress!
As for the outside markets, the US $ has begun to slightly relieve some of the pressure it has been applying to export markets, as the dollar has dropped 3.5% over the past two weeks, and is currently trading at the lows for the month.
Corn: 1-2 lower
Beans: steady/slightly higher
Have a good day!