Morning Comments March 22, 2017

Wednesday, March 22, 2017, 10:03 AM
Submitted by: Landus Cooperative

Opening calls:

Corn down 2

Beans down 2

Yesterday, May corn closed down 2-1/4 at $3.61-1/4, and December closed down 1-3/4 at $3.84-1/2.   Corn continue its downhill slide with weakness in wheat, fast paced planting progress in southern states, and favorable South American weather.   Sharp losses in the U.S. stock market and crude weighed heavily on corn during yesterday’s trade.  Weakness in the dollar may have prevented a further slide downward.  With recent downturn of corn prices, ethanol has begun posting larger margins increasing production, but one note of concern is Brazil is considering imposing a 20% tax on ethanol imports, Brazil has become a major importer of U.S. ethanol. 


On Tuesday, May soybeans closed up 2 at 10.01-1/2 per bushel and November rose 4-3/4 to $9.98-1/4 at the close.  Funds were buyers of beans (2000 contracts) and soy oil (5000 contracts) during Tuesday’s trade.  Some traders believe that recent weakness left beans oversold.  There was weakness in the U.S. dollar taking additional pressure off beans.  Palm oil was up, and farmer selling of beans in U.S and South America remains slow.  Noteworthy is that Senator Grassley is asking Trump to change the biodiesel tax credit from blender to producer to limit soy oil imports, which could expand domestic soy oil used in biodiesel.  But some traders are worried that the size of the South American is underestimated and could have a larger impact on carryout. 


Don’t forget this Friday, March 24th, is our “Surviving and Thriving in Challenging Times; Grain Marketing Forum for Women” event at the Scheman Building in Ames.  You can still register at http://www.aep.iastate.edu/womeninag.



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