Morning Comments March 23, 2017
Thursday, March 23, 2017, 8:03 AM
Submitted by: Landus Cooperative
Corn: steady to 1 lower
Soybeans: 3 to 4 lower
Yesterday, May corn closed 2 ½ cents lower settling at $3.58 ¾. The December contract was 2 ½ cents lower closing at $3.82. The corn market is struggling to find movement upwards with big stocks, big global production, and lack of fund buying; demand is good but can’t outrun production. Traders believe South America’s production will start competing with U.S corn and with large amounts of cheap feed alternatives, corn doesn’t have a story to bring buyers to the market.
Wednesday, the May bean contract closed 1 ¾ cents lower settling at $9.99 ¾, and the November contract closed ½ cent higher settling at $9.98 ¾. New crop sale of beans to China announced yesterday of 4.41 mil bu. Soybean meal is having a hard time competing with cheap feed alternatives and putting pressure on beans. Along the lines of “large crop, long tail”, traders believe that the South American crop is somewhat underestimated at 108 mmt (USDA) and more in the line of 110 to 111 MMT. With favorable harvest weather, exports could begin switching to the south. Weakening crude values are adding to pressure on corn and beans prices.
With no major fundamental news to drive the market upwards, the trade continues to look forward to the March 31 report. Big acres for beans could add additional pressure and smaller than expected acres of corn could relieve pressure on corn.
Ladies, March 24th at the Scheman Building at the Iowa State Center "Surviving and Thriving in Challenging Times: A Grain Marketing Forum for Women." Registration starts at 8:30 a.m. Online registration is now closed, but you can still register at the door.
March 29th, Jake Moline, of FC Stone, will be at the Lakeview Community Center in Clear Lake. This would be a great opportunity to hear what Jake has to say about the commodity markets and predictions about the report on the 31st. Registration at 10 a.m., meeting at 10:30 a.m., lunch to follow. Call 1-877-778-2226 to register or contact your local Landus Cooperative location.