Morning Comments March 16, 2018
Friday, March 16, 2018, 8:03 AM
Submitted by: Landus Cooperative
Corn down 1 to 2
Soybeans up 4 to 5
The corn market closed lower for the 2nd consecutive day yesterday following the weakness in the wheat market, despite massive U.S. corn sales last week (98.6 million bushels), which was the largest weekly export sales number in 23 years. Japan was the featured buyer. The Argentine crop condition rating this week improved with the percentage of crop rated G/E rising from 7% to 8%, so the rains that came over the past few days did not help the crop very much- their crop is now 31% mature. Most analysts are now estimating the Argentine crop at 31 and 33 MMT vs. the USDA last estimate of 35 MMT.
The soybean market closed higher yesterday supported by both a better than expected export sales number and a better than expected crush number. There has been some concern about our trade with China, but this week’s export sales included 445,000 MT to China and 452,000 MT to unknown. The Rosario Grain Exchange cut their Argentine crop estimate by 6.5 MMT to 40 MMT, while the Buenos Aires Grain Exchange kept their estimate at 42 MMT.
The weather outlook for South America has another round of showers and thunderstorms for Argentina Saturday into Monday. Precipitation looks to occur in most of Argentina’s crop. The GFS model shows decreased rain chances for the central portions of the southern Plains during March 25-27, but shows increased rain chances for Mar 28-30th.
Have a great day!