April 3, 2017
Kaitee Schaefers
Morning Market Insight

Corn: up 3
Corn traded higher in the overnight on lower acreage numbers despite record stocks reported in Friday’s USDA report. Corn stocks were up 10% from last year at 8.616 bln bu. Part of this is due to less feed usage due to a fairly mild winter. Corn acres were expected to be down in this report but ended up being on the lower side of expectations coming in at 89.99 mln acres. Now that we have this report out of the way weather will be the key factor going forward. Today the USDA will release the USDA crop progress and conditions report. This will come out every Monday at 3 pm. Export inspections will be out this morning at 10 AM and thee trade needs 42.2 mbu to stay on track with the USDA forecast, it was 61.3 mbu last week. Corn futures are back up to about the middle part of the range we have been in all year. New crop corn futures are trading at 3.92 right now. Below is a snapshot of Friday’s report.

Soybeans up 2
Beans were down 15 cents on the nearby contract and down 9 on the new crop contract on Friday after the report was released,89.5 mln acres in the USDA report Friday beats all trade guesses on beans. The expected range for beans was between 86.4 and 89.3 mln acres. A bit more bearish than we expected. Although now going forward we will look to weather to drive the market. It all depends on how planting goes this spring. Export inspections will be relased at 10 am, we are looking for 14.1 mbu, last week was 20.4. This week Trump meets with China’s president Jinping to discuss trade policy. As for South America Brazil bean harvest is at 74% finished. They are harvesting an exceptional crop this year.

Wheat mixed
Spring wheat acres are down 3% from last year at 10.6 mln acres. Over all wheat acres are down 4.09 mln acres at 46.059. South Dakota looks to be down 13% from last year. Over the last 5 days Texas, Oklahoma, and Kansas have received exceptional rains. We should get a good picture in this afternoons crop progress report on how the wheat is doing in our southern states.