Morning Comments March 26, 2018
Monday, March 26, 2018, 8:03 AM
Submitted by: Landus Cooperative
Corn +1 to 2
Beans +5 to 6
Grains trading higher this morning as futures are attempting a recovery following steep losses last week. Bean meal rallied sharply into the close on Friday, continuing that rally today and trading at a two-week high. Stories are circulating today that Chinese buyers of U.S. soybeans are quietly working on contingency plans to ensure a steady supply of protein needs in case a trade war fully escalates. At least two trading firms have started buying rapeseed meal as a replacement for soy meal. Some firms have also implemented exit clauses for bean purchases, giving them the right to cancel the purchase if necessary. There are also news reports that representatives of the U.S. and China met over the weekend in an attempt to de-escalate the trade war.
Over the weekend, Argentina had rainfall in the north, which was considered 25% of the total growing regions. The outlook has limited rainfall with another front expected to bring light and spotty showers this coming weekend. Close to average rainfall is expected in Brazil.
Another big focus for the week will be Thursday’s USDA reports. Not only will we see the Prospective Plantings Report for 2018, but also the Quarterly Grain Stocks Report. Both of these tend to move the market. Couple these with a Good Friday holiday for the Board of Trade and it could get pretty wild between 11 AM and the close, ahead of the 3 day weekend. We continue to encourage you to get your price targets lined up and if needed, place offers ahead of the report.
This Thursday is also the deadline to enroll in the Merchant’s Plus program. We have 3 different pools of new crop to choose from: 2 with INTL FCStone and one with Roach Ag. Please contact a Grain Marketing Advisor or call 877-778-2226 for more details.