Morning Comments April 28, 2017
Friday, April 28, 2017, 8:04 AM
Submitted by: Landus Cooperative
Corn down 1-3c
Soybeans steady to 2c lower
Corn had big overnight volume ahead of First Notice Day for May futures – which have large deliveries against them. Corn has 1,100 contracts, soybeans have 1,015 contracts, soyoil had 1,442 contracts, and soymeal had 400 contracts. This is seen as “bearish” as holders of these contracts see more value in physically moving the product to the delivery system vs. selling the product in a cash market (bearish demand). A total of 4,707 contracts were put out for delivery – one of the largest total in recent years. Our forecast is cold & wet for the weekend – keeping any planting progress to a minimum. Despite the weather headed our way, the general consensus is that corn planting will be well over 30% complete by the end of the weekend.
Soybean futures continue trading in a consolidated pattern. July Soybeans found support at 950 and has traded a 20c range for the last 28 days. Export values have improved the in last 10 days as soybean export sales rose to a 90 day high this week. Weaker soybean futures & a weaker dollar have helped US soybeans become more competitive on the world market. All-in-all, we are entering the time of year where weather premiums & volatility are easiest to come by. Our next input from the USDA will be the May WASDE report on May 10th.
Have a good day!