AM Comments 5/5/15
Tuesday, May 5, 2015, 8:05 AM
Submitted by: Eric Kist
Markets are mixed coming into this morning, as corn is trading 4 cents lower and beans are a penny higher. Yesterday’s weekly planting progress update report is acting as a bear on the corn market, as corn planting across the nation is reported to be more than halfway complete! Just a week ago we were at 19% complete nationally, and this week that number jumped to 55% nationally, compared to 38% on average. As for Iowa, significant progress was made last week with the weather cooperating, as corn sowings jumped from 14% last week to 68% this week, compared to an averaged pace of 39% complete! Many producers in the state managed to wrap up their corn acres, and a few even started in on beans, as the planting progress report estimates that Iowa is now 11% planted in soybeans, compared to 5% on average.
Seeing significant progress being made in the fields is certainly exciting, but for active market traders that news translates into the potential for another good crop year without any supply issues, and suggests that market funds will be selling corn futures, and playing from the short side. As evidenced, nearby corn futures sank to a six month low during yesterday’s trade, dating back to the 13th of October…
Soybeans managed a big day yesterday, and are slightly higher again this morning, as rumors of Chinese interest in soy oil has the entire soy complex trading higher.
Have a good day!