AM Comments 05/17/16
Tuesday, May 17, 2016, 1:05 PM
Submitted by: Dustin Weiner
Last night gave us similar price action to Sunday night – corn & wheat felt pressure while soybeans leaked higher. The pressure on the feed grains seems to be coming mostly from strong planting progress and crop conditions. The weekly planting progress report (maps below) yesterday afternoon confirmed that corn planting has kept pace with estimates (75% complete) and is still ahead of the 5-year average (despite recent delays). Similar story in soybeans with planting progress coming in at 36% - right near the average trade guess and above the 5-year average. The strength in soybeans overnight is a little tough to explain/justify, but I guess with well over half the crop not yet planted… keeping some risk premium in the market isn’t overly surprising.
Overall today looks to be similar to yesterday – chop chop chop. The crude oil market made another new, multi-month high which could eventually bring support to both the corn and soybean markets. There are quite a few different private companies releasing new acreage estimates, with the general trend showing higher soybean acres at the expense of corn. Interesting to talk about of course, but the USDA doesn’t release the final planted acreage until June 30th.
Soybeans 2 to 4 cents higher
Have a great day!
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