April 5, 2017
Grain Marketing Specialist
Corn: up 2
Yesterday corn closed down below its 100 and 200 day moving average as we saw the unwinding of some corn bean spreads. The report drove the market up on short covering Friday and Monday, now here yesterday we saw some profit taking push us back down a few cents. USDA grain crush report showed 423.5 mln bu of corn went to ethanol through February. This is up .6% from last year. Once again all eyes are on US and South America weather going forward. Brazil’s double crop corn has had a good start to the growing season, slightly on the dry side but the 10 day forecast looks favorable for a shot of moisture in Southern Brazil and Paraguay. New crop corn futures are hanging around that 3.90 range as of this morning.
Beans: up 8
Technically we had a bean bounce at 9.37 on the nearby contract along with huge overnight volume in beans. Also a wet forecast for Argentina has soybeans up overnight. Argentina has been on the wet side with some reports of flooding but I wouldn’t bet on that being a widespread area. The Argentina 10 day forecast looks to be dry. Cordonnier keeps Argentina crop at 56.0 mmt and Brazil was raised slightly to 111.6 mmt. Soybean meal sales have been strong thanks to good global demand. Below is a look at the nearby May soybean chart.
Wheat: Mpls up 1 Kansas up 3
Last week’s rain in the ww crop area was beneficial this area was dry for some time, more rain is expected this week. Yesterday Kansas and Missouri got 2 inches of rain. Oklahoma and Texas look to get moisture over the next few days to come. December to January, Argentina’s wheat exports have been strong. In fact they were up 23% year on year.