Morning Comments February 27, 2018
Tuesday, February 27, 2018, 8:02 AM
Submitted by: Landus Cooperative
Yesterday, the March corn contract closed 2 ¼ cents higher settling at $3.68 ½. The December contract was 1 ¾ cents higher closing at $3.99. The corn market continues to find upside support from dry weather in Argentina and strong export. The weekly export inspections out yesterday showed that corn was above expectations of 800,000 to 1.1MMT of final inspections of 1.306 MMT, but, note that U.S. corn exports still down 31% from last year. Corn should continue to gather support from dry conditions in Argentina and the U.S. plains, wet conditions in southeastern U.S., and delays in Brazil’s 2nd corn crop. Winter wheat ratings are showing more deterioration in western states with 78% of Oklahoma, and 49% of Kansas winter wheat rated poor to very poor.
The March bean contract closed 2 cents lower yesterday, settling at $10.34 ¼ and the November contract was 2 ½ cents higher settling at $10.30 ½. 2/3 of Argentina’s crop is under drought stress, and meal made a new contract high, giving beans early support yesterday. Beans lost momentum turning the session when March beans hit a contract high since July 12, 2017, turning the old crop beans lower. Export inspections fell in line with expectations, but China has switched to exporting beans out of Brazil hurting U.S. exports, and YTD exports are 13% lower than last year.
Averaging Contract sign up deadline is March 1st, if you are interested, please contact your local GMA. Please note that Landus Cooperative is bidding of the May.
Thanks and have a good day!