AM Comments 3/30/16
Wednesday, March 30, 2016, 8:03 AM
Submitted by: Eric Kist
Grains are off to a quiet start today, as all eyes are peering ahead to tomorrow’s USDA stocks and acres reports. Overnight volume was low, despite positive outside markets and technical indicators. Corn managed to close above its 100-day moving average yesterday for the first time in 5 ½ months, and soybeans are trading at their highest levels since last August.
The US Dollar is helping to support the recent rallies in grains, as the Dollar is now approaching its lowest levels in nearly 5 months, following dovish comments yesterday from Federal Reserve Chairwoman Janet Yellen regarding interest rates, stating: “Given the risks to the outlook, I consider it appropriate to proceed cautiously in adjusting policy.” US equities are trending higher this morning as a result, and higher crude oil prices today are also throwing support behind grain prices.
Showers are expected here in the Midwest over the next couple days, and rainfall in the Delta region has also been making news. Following-up from previous heavy rains during the start of corn planting in TX/LA/MS, weather models are calling for up to another 4” of precipitation over the next week, which will continue to delay corn plantings, and begin the chatter of corn acres being switched over to soybeans eventually. We will get a preliminary estimate of corn/bean/wheat acres in tomorrow’s reports, but the general consensus is that both corn and bean area will increase, while wheat acres are expected to decline. Markets today will likely chop around both sides of unchanged, as the trade looks to firm up positions ahead of tomorrow.
Beans: mixed-1 lower
Have a great day!