Morning Comments May 17, 2017
Wednesday, May 17, 2017, 7:05 AM
Submitted by: Landus Cooperative
Corn steady to +1
Beans +1 to +2
The story of the day/week is weather, with severe storms ripping through the Midwest. Hail, high winds, torrential rains scattered throughout the corn belt. So far, no major crop damage is being reported, but it looks like more storms on the way this week.
Many of the producers we are speaking with appear to be somewhat optimistic for a corn rally in the next 45 days or so. If you are in this camp, please let us know what levels you are looking for. Especially for old crop, we have some programs that might help you get close to those targets. If not, and we need a futures rally, we can also enter a firm offer into the system and if it hits during the trading hours, you will be filled. These are especially helpful during volatile market moves, which tend to happen more often in the overnight trade. For now, we’re continuing in the narrow range we have been in for the past couple of months. But, if the folks we’re hearing from are right, and we break out of this range, it could be chaotic, which is when an offer works best.
For old crop beans, we’ve been able to get quite a few folks sold at their target of $9.00 during the last 2 or 3 rallies. These rallies have tended to fall back, and struggle to break through the upside resistance. “IF” the projected acres are anywhere near the current estimates, between 89.5 and 90 million acres, AND weather is stable, we’ll have a hard time getting much more out of the Board of Trade.