Cinco de Mayo 2016
Producer Marketing Manager
CORN: As of 7:45 – Steady to Up 1
China continues to deal with its large stockpile of corn and with price supports falling, the producer there has reacted and will plant less corn for the first time in 13 years….expecting a drop of 1.3 million hectares (approx. 3.1 million acres). Private estimates keep coming in and continue to drop the size of Brazil’s second crop of corn. Export sales out this morning were at the low end of expectations for old crop and pretty much non-existent for new crop.
SOYBEANS: As of 7:45 – Up 10
The bean market bounced back yesterday after Tuesday’s sell off and continued that momentum thru the overnight session. Some chatter around Chinese pork demand that is fueling the soybean meal rally. On Tuesday Chinese pork prices were up 4% over last week and up 25% since Jan 1. The Government is set to release 3000MT of frozen pork reserves into the market to address some supply problems and keep prices from escalating even more. The continued debate on the transition from El Nino to La Nina is keeping some risk premium coming at the market. Old crop sales this morning were well above expectations at 30 million bushels!
WHEAT: As of 7:45 – Steady
All wheat classes seen higher prices yesterday. The HRW tour is still going on this week and we should see final results later today. The KS leg of the tour had an average yield of 44.3 vs. 34.5 last year. A fair amount of disease pressure has been noted with all the moisture in the southern plains. Stats Canada will be out with their March stocks numbers tomorrow. Wheat export sales this morning were in the middle of expectations at 6.6 million bushels, nearly split evenly between HRW and HRS.