Morning Comments March 1, 2017
Wednesday, March 1, 2017, 8:03 AM
Submitted by: Landus Cooperative
Corn +1 to +2
Soybeans +5 to +7
Yesterday was a good day for grains and they continue firmer overnight, currently soybeans are up 6 to 7 cents and corn up a couple. Funds turned sellers to buyers yesterday, buying 18,000 contracts of corn and 14,000 contracts of soybeans.
Yesterday’s uptick in corn was tied to comments about ethanol and the potential of an executive order shifting responsibility to meet RFS requirement away from refiners and more to blenders. However, nothing is confirmed or substantiated on this yet. There was also talk of getting rid of subsidies on Argentina biodiesel imports which would support soyoil, which in turn is bullish for soybeans. The tax credits have expired for the biodiesel imports from Argentina, but there is still a lot of confusion throughout the marketplace regarding the White House and potential new rules to the RFS mandate. Yesterday also showed the power of using offers. At one point, corn was up 15 cents, before losing some steam and closing +6 to +7. We had several offers hit at those higher levels, and would continue to encourage you to put in a firm offer if there is a specific price you are looking for.
For the month of February nearby corn was up approximately 8 cents and soybeans up just 2 cents.
Crop insurance spring averages came out yesterday after the close:
-December 2017 corn futures at $3.96
-November 2017 soybean futures at $10.19
These are based on the average close of the new crop futures during the month of February.
Speaking of averages for the corn and bean market, our sign up deadline for the Averaging Contract is this Friday. Contact your local Grain Marketing Advisor to enroll some of your New Crop bushels.
Have a great day!!