Morning Comments May 5, 2017
Friday, May 5, 2017, 8:05 AM
Submitted by: Landus Cooperative
Corn +2 to +3
Beans +1 to +2
Wheat +2 to +3
The wheat market got hammered yesterday and the corn market again played “follow the leader”. The USDA Export Sales report showed a 22% decline in old crop corn sales from the previous week. Chinese markets were sharply lower yesterday, sparking fears of a world economic slowdown. With the risk of summer weather still an unknown, it’s unlikely the trade will want to press the short side too hard for a while.
Improving old crop basis helped support the nearby soybean market yesterday while improved weather forecasts weighed on new crop. The Brazilian farmer was a seller of old crop beans yesterday due to lower currency valuations and the need to move soybeans before the second crop matures. The trade is giving some consideration to potential changes in the biodiesel program, but that is just talk at this point.
Crude oil was down almost $2.50/barrel yesterday, and closing in on $45 after spending a few months at or above $50. The U.S. dollar was also lower yesterday, but is slightly higher this A.M. The stock market continues its strong performance
as well, which may also be keeping traders from wanting to own commodities.