Morning Comments March 28. 2017
Tuesday, March 28, 2017, 8:03 AM
Submitted by: Landus Cooperative
Corn: 2 to 3 higher
Soybeans: 3 to 4 higher
Are we in for a “turn around Tuesday”? At the early morning break, the soy complex, corn, oats, wheat and crude are all trading green. Even though producers in the southern United States are ahead of progress with planting, heavy rains have slowed that in several areas. A higher close today would turn momentum indicators higher, and we could see some buying ahead of Friday’s reports. The average trade estimate for Friday’s prospective plantings report puts corn areas at just shy of 91 million acres, down 3 million from last year. The average estimate for Friday’s stocks report is 8.5 billion bushels, a 9% increase from last year.
Yesterday, May beans closed 4 ¼ lower settling at $9.71 ½ and the November contract closed 6 lower settling at $9.71. Funds were net sellers of 4,000 contracts of beans and 3,000 contracts of meal and buyers of 1,000 contracts of oil. Perhaps, we’ll see bean momentum turn higher, too. The estimate for Friday’s acreage report is just over 88 million acres, up 4.7 million from last year. Stocks are estimated to be around 1.7 billion bushels, a 10% increase from last year.
Keep in mind that Friday’s prospective planting estimates will be the USDA’s best forecast now, and actual plantings will be different. Spring weather will definitely have an impact on final acre numbers later this spring.
Tomorrow, Jake Moline, of INTL 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 begins 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. This is the last in our series of 4 independent speakers discussing the grain markets: past, present, future. If you were not able to attend one, they are/will be posted on our website.