Morning Comments April 20, 2017
Thursday, April 20, 2017, 8:04 AM
Submitted by: Landus Cooperative
Corn 1 to 2 cents firmer
Beans 3 to 4 cents firmer
Corn prices are a penny higher, keeping May above its 200 day average of 3.625 today. Export sales last week were expected to run between 28 and 39 million bushels, above the weekly rate needed to reach USDA’s forecast for the 2016 crop of 12.7 mln bushels. Actual export sales were 29.8 mln bushels – towards the lower end of the expected range. Ethanol production rebounded last week and stocks built slightly.
Soybeans are posting modest gains, after holding support at bottom of their two week channel overnight. Export sales last week were expected to total between 11 and 18 million bushels of old crop business. Actual export sales were 7.8 mln bushels, below the lower range of estimates. Improving crush margins in China last week are helping support a little new buying.
Wet forecasts for the rest of April should provide some support for now, but large old crop supplies continue to hang over the market. It’s important to be diligent and stick to your marketing plan in this environment. We are entering the most volatile time of the year where weather premium is easy to come by. Heed the advice from many of the coaches we’ve had over the years: stay low – keep your feet moving.
Have a good day!