Morning Comments May 24, 2017
Wednesday, May 24, 2017, 7:05 AM
Submitted by: Landus Cooperative
CORN +1 to +2
BEANS +2 to +3
It was pretty quiet in the overnight trade, after yesterday’s sell-off. July corn lost 5 1/2 yesterday, while December was off 5. So far, the traders have concentrated more on the old saying “rain makes grain”. Time will tell if they move on to the corollary of “not if it goes down the drain." There are starting to be a few stories talking about replanting anywhere from 1 to 3 million acres. Some are also talking about the crop conditions in Illinois and Missouri, but I am sure we all remember that talk from a couple of years ago. Again, time will tell, but it’s going to take more information to break us out of this fairly narrow range, one way or the other.
For soybeans, yesterday July futures were off 8 1/4, while November was off 7 3/4. This, despite the early news of a sale of 126,000 MT of old crop soybeans. Year on year crush is also up about 9% vs. the USDA’s projection of a 6% increase. Perhaps the trade is thinking we will eventually see more than 89.5 million bean acres in the U.S.
In other news, the dollar was slightly stronger yesterday and crude oil continues to nudge a little higher, now just over $51/barrel.
Did you know that you can now get Landus Cooperative CASH bids in a text message? If you’d like to see those, contact your local GMA or call the Ames office at (877) 778-2226.