AM Comments 04/25/16
Monday, April 25, 2016, 12:04 PM
Submitted by: Dustin Weiner
Our grain markets are off to a mixed start this morning, nearby soybeans are following suit from the poor close on Friday and have spent the entire overnight session in the red. Corn started lower also - but did bounce off of technical support and is currently trading a penny or two higher.
South American weather outlooks improved over the weekend which is keeping a bit of a lid on our futures markets this morning. Brazil’s forecast is showing cooling temps and much needed rains for most of the (double-crop) corn production areas in need of moisture. Meanwhile after a wet weekend there is a drier trend in store for Argentina (I think I saw a 10-day window??) which should finally allow soybean harvest to resume.
This afternoon the weekly crop progress report will be released. The market is expecting it to show that somewhere between 30-40% of the U.S. corn crop has been planted – the 5-year average for this week is 16% - indicating that we have had a good start. We should also get the first soybean planting progress numbers, probably showing something in the low single digits completed (2-5%). The U.S. weather pattern turns wet for a while with some areas receiving heavy rains over the next several days. It’s possible that these heavy rains are what is helping corn trade higher this morning - in theory the heavy rain it could slow some folks down to a more “normal” planting progress pace…
Corn 1 to 2 cents higher
Soybeans 4 to 7 cents lower
Have a great day!
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