Morning Comments May 16, 2017
Tuesday, May 16, 2017, 8:05 AM
Submitted by: Landus Cooperative
Corn: -1 to -2
Beans: +1 to +2
USDA reported planting progress for corn at 71% complete vs a trade expectation of 68%, and a 5 year average of 70%. Soybeans are 32% complete, same as the 5 year average, vs. 28% expectations.
Brazil is strengthening requirements for ethanol importers in order to protect domestic producers from the increase of U.S. corn ethanol imports. Brazil is working on a second generation of GMO beans and precision farming is not far behind for them. One well known analyst has increased the Argentine soybean yield from 55 Bushels/Acre to 56.5, but he is still slightly behind the Argentinian exchanges, showing 57 to 57.5.
In other news, the dollar was a little weaker again yesterday and crude oil traded to a 2 week high, and is up a bit again this morning, but still just below $50/barrel.