Morning Comments February 23, 2017
Thursday, February 23, 2017, 8:02 AM
Submitted by: Landus Cooperative
Good morning! In typical Iowa fashion, this weekend is forecasted to be about 30 degrees cooler than last. Heavy snowfall is forecasted for the northern tier of Iowa, a not-so-subtle reminder that spring is still several weeks away.
Corn traded about even and soybeans lost a little ground overnight down 4 ½ cents at the 7:45 a.m. break. The USDA’s annual Ag Outlook Conference begins today. This will be our first look at what the USDA is expecting new crop acreage numbers to look like. These acre numbers are based on estimates. The March 31st Planting Intentions report (this is a big one) is based on surveyed data. For the February Forum, USDA estimates 90 mil corn and 88 mil soybeans.
A Reuter’s poll taken recently is estimating 2017 corn acres to be 91.046 million acres vs. 2016 seeding at 94 million and 2017 soybean acres to be 87.58 acres vs. 2016 seeding at 83.433 million acres. Those are big changes over last year that could have a substantial impact on grain prices.
The funds were buyers of corn yesterday and sellers of soybeans, which seems to be the recent pattern. Everyone is still keeping an eye on South American weather. For now, all remains well and we have no expectations of any damaging heat or dryness in the next 4 weeks.
Spring Crop Revenue Insurance Guarantees: Here is an update on where those prices stand:
· Corn $3.96^6 (Avg. close of the DEC17 contract during Feb)
· Soybeans $10.20^6 (Avg. close of the NOV17 contract during Feb)
Corn down 1 to 2 cents
Soybeans down 7 to 8 cents
Have a good day!