Morning Comments April 27, 2017
Thursday, April 27, 2017, 8:04 AM
Submitted by: Landus Cooperative
Corn 1 to 2 cents cent higher
Beans steady to 2 cents higher
Yesterday, May corn closed 6 cents lower settling at $3.59. The December contract was 4 ¾ cents lower closing at $3.84 ¼.
The corn market gave back most of the previous day’s gains yesterday. Yesterday, the May bean contract closed 8 ¾ cents lower settling at $9.45 ¾ and the November contract closed 7 ¾ cents lower settling at $9.54.
Grain futures are mixed this morning with the front-end of the market showing some life at the morning break. Prices plunged yesterday after a rumor circulated that the Trump administration was drafting an executive order to withdraw the U.S. from NAFTA. News reports this morning state that the White House may be backtracking from this position. Generally, free trade is helpful for shipment and exchange of bulk commodities. A withdrawal from NAFTA would hinder the ability to quickly execute export trades with Canada and Mexico – adding to the cost of transactions. Stay tuned.
Ethanol production fell last week despite improving margins, with inventories slowly rising. Crude oil is lower, moving below $49 a barrel. Corn Export sales data out this morning could show a slight improvement from last week's total of 33.4 million bushels, with year-to-date commitments above the rate forecast by USDA for the 2016 crop. Bean Export Sales reported this morning are expected to show improvement, coming in around 20 million bushels. The large South American supplies and the potential for planting delays in corn pushing more acres to beans is keeping the bean market from getting much buying interest.
Landus Cooperative has a 2017 Non-GMO soybean program. There are premiums offered of over $1.00 per bushel for harvest delivery and buyers call. Please contact your local Field Sales Agronomist or Grain Marketing Advisor for details.