Morning Comments May 4, 2017
Thursday, May 4, 2017, 8:05 AM
Submitted by: Landus Cooperative
Opening calls this morning:
Corn down 3c
Soybeans down 2c July, down 5c Nov
The corn market was supported yesterday by bad weather in the eastern Midwest. Moderate to heavy rain spread across the same region that was drenched last weekend by upwards of 10 inches of rain. The rally was limited by forecasts that indicate planting in the western and northern Midwest should be active in the coming days. Traders are watching the weather in Brazil as they enter the pollination period for their safrinha crop. Rain is needed for optimum yield but may be harder to come by as the wet season typically ends in Central and Northern Brazil by late April. Overnight corn closed 3-4 cents lower.
The soybean market got a bump yesterday from rumors that China may have purchased some U.S. old crop soybeans even though they remain an aggressive buyer of Brazilian soybeans. Informa Economics increased their Brazilian soybean production estimate by 2MMT. The trade is still trying to determine what effect the wet conditions will have on the size of this summer’s crop. Overnight soybeans closed 2-5 cents lower. Outside markets have crude oil down 1.5%, breaking through some key support at $47.70/barrel and the U.S. dollar unchanged.