Morning Comments May 25, 2017
Thursday, May 25, 2017, 8:05 AM
Submitted by: Landus Cooperative
Corn steady to +1
Beans +1 to +4
Weather continues to be the main driver for markets as we move through “too-too” season. Right now, the focus is on too wet and too cool; eventually, we’ll talk more about too dry and too hot. In this part of Iowa, it sounds like most folks are either done with planting or need a few days of drying weather followed by a couple of days to finalize planting. There is a little talk of potential replanting, but not near like we’re hearing about in other parts of the corn belt. Parts of Illinois, Indiana, Ohio and Michigan are in serious need of an extended period of dry weather. As long as that continues, we should stay above the fairly well defined support level of $3.65 on July corn futures. The question is whether or not we’ll be able to pop through the other end of that range, in the low 3.80’s. If so, be prepared, as any spike in that area could be met with decent pressure and be short lived. In other words, have your offers in place.
For soybeans, the concern is if the cool/wet weather will force more acres to soybeans. If so, we will test the most recent support levels of $9.40 July futures. South American news is showing Argentina around 80% complete on their harvest, compared to 72% last year, but a 5 year average of 83%. So, not too far off pace. Expectations for a large crop have not changed. Funds continue to sell, adding to their short positions recently, but they will probably look to reduce that short ahead of the 3 day weekend break.
Bottom line, global supplies are an anchor for both corn and bean prices. A weather rally might come, but when? Be ready for a bumpy road throughout the summer. It's a great idea to get a marketing plan set up and try to stick to it! A great asset to assist with setting up a marketing plan is your local GMA. They would love the opportunity to help in any way possible!
Finally, as mentioned yesterday, you can now receive cash bids in a text message from any Landus location. For more information, call the Ames office at 877-778-2226.
Thank you for your business and have a great day!