Morning Comments April 17, 2017
Monday, April 17, 2017, 8:04 AM
Submitted by: Landus Cooperative
Corn steady to 2 lower
Beans steady to 2 higher
Widespread rains over the weekend didn’t amount to as much as trade was expecting. Some areas got up to 2 inches, but for the most part less than an inch and farmers will be back in the field today. However, the weather forecast for next 10 days has above normal precipitation. This will support the corn market. This afternoon the Crop Progress and Conditions report will be out.
China has reported they will cut their 2017 corn plantings by almost 4% (1.6 million acres) and beans will grow by a little over 8%. Last year China decreased planting 3.3 million acres of corn. Trade is looking at this as positive, even thou China is sitting with a lot of corn in their inventory. Canada is also expecting more soybean acres this year. Even though their acres are relatively small in comparison to U.S. acres, they plan to plant 10 million acres to soybeans this year vs. 5.5 last year.
The trade will be watching weather in the US and Argentina this week for direction. “IF” precipitation forecasts hold true, or increase, we could see corn prices work higher fairly quickly. If you are looking for a specific price, whether old or new crop, let us know, and we’ll put in an offer for you. These offers can also work in the overnight session, which is where we typically see a little more volatility, so give us a call if you are interested.