April 7, 2017
Grain Marketing Specialist
The corn market is really lacking news, we did see a 5 cent trading range yesterday before closing at 3.60 on the May contract. 3.64 looks to be the next line of resistance. Crude oil is edging higher on talk of the OPEC nations and other key producing countries meeting to discuss further production cuts into June. Next week Tuesday the WASDE report is released and average trade guess is that the USDA will raise Brazil crop up 1 to 92.5 mmt and raise Argentina production to 37.8. Argentina is willing to negotiate trade with Mexico, considering no tariff on corn, wheat, and beef. President Trump met with China’s president Jinping yesterday to discuss trade policy. The meeting continues today.
The soybean market continues its trek lower, light trade volume in the overnight. The nearby contract is trading at 9.40 prices we haven’t seen since early last April. New crop beans currently trading at 9.49. Harvest slow in Argentina with recent rain and flooding but next week’s forecast looks dry. They are only about 7% complete on their harvest. The USDA is expected to raise Brazil production to 110 mmt and also slightly raise Argentina up 1 mmt to 56 mmt in next weeks WASDE report.
Wheat markets chopping sideways, light trade last night again. Southern states have caught much needed moisture this week and next week’s forecast looks to be warm and dry. Good growing conditions.