Morning Comments May 1, 2017
Monday, May 1, 2017, 8:05 AM
Submitted by: Landus Cooperative
Corn +5 to 6
Soybeans +7 to 10
Good morning, and Happy May Day!
It’s good to turn the page on April and hopefully find a May weather pattern more conducive to planting.
Overnight trade was indeed focused on the amount of rain received in the corn belt with reports of anywhere from 2 to 9 inches. Corn was a bit higher last week, with July futures up 2 3/4 and Dec gaining 1 3/4. We’re not hearing of many, if any, traders expecting to blow the top off of the recent narrow range, but it would be good to get back closer to the high end of that range. Weekly planting progress reports are due this afternoon, and many expect a jump from last week, but still expect only about 1/3 of the crop to be in the ground as of yesterday, about average, but well behind last year’s 43%.
For soybeans, July futures were off 4 1/2 last week, and November was 6 1/4 lower. Funds continue to add to their short positions in much of the bean complex, but there is some news that they are buying options, in effect, hedging their bets some. We still have very good world-wide demand for soy related products, but also an expectation of a large carry out on Old Crop, which will limit any rallies. There have been some bean acres sown, and expectations are that we’ll see around 10% completed in this afternoons planting progress report.
If you don’t have an offer in to sell some Old Crop corn (or New Crop), today would be a good day to talk with your local Grain Marketing Advisor. Look at the most recent ranges, and think about placing an offer to sell toward the top end of that range.