Morning Comments May 22, 2017
Monday, May 22, 2017, 8:05 AM
Submitted by: Landus Cooperative
Corn +2 to +3
Beans +2 to +3
Good morning! It doesn’t look like sunshine for a couple of days, but hopefully it’ll at least start to get warmer and drier soon.
Last week we had a couple of crazy days in the trade, goes to show that international politics do weigh heavily on our markets. For the week July corn gained 1 ½ cents and beans lost 10 cents, which is not too shabby considering the day they had on Thursday! The Brazilian currency weakness didn’t last long and rebounded on Friday, helping our grain markets turn around and close in the green. Soybeans will continue to keep a close eye on further political developments out of Brazil. If there is more devaluation of the Brazilian Real it could trigger another round of selling by the Brazilian producer. In a vote this weekend by the Brazilian law association 25 to 1 were in favor of an impeachment hearing for President Temer, this would be the second impeachment of a Brazilian president in just a little over a year.
We’re seeing grain trading a bit higher this morning as the recent cool/wet weather is debated on what effect it has had on the planted crops. At one point last week, funds were estimated to be short 207,000 corn contracts, but are now estimated at a little less than 200,000. With the less than ideal weather conditions we’ve been experiencing lately, there are ideas that they should continue to liquidate this position even more. This would be the impetus we need to potentially take the corn market out of the relatively narrow range we’ve been in for a while now. It’s never a bad idea to have offers in place to catch these potentially short lived up ticks!
Another planting progress report is to be released today, the trade is expecting corn to show 85% completed and 55% of soybean acres.
Have a great day!