April 16, 2013
Producer Marketing Manager
Outside markets never let up yesterday as all sectors took a beating, led by Gold having its largest down day in over 30 years (down 14% in 2 days). The weakness started when China’s GDP report came in at 7.7% and the trade was expecting 8.0%. So far today Gold has stabilized and is trading around $25/oz higher.
Corn: As of 7:35 – Up 2
We got our first glimpse at planting progress yesterday and to no one’s surprise we are behind. Nationwide we are at 2% planted, which is behind the 5 year average of 7% complete. Texas was the only state that was ahead of their 5 year average pace. With another system moving across the belt this week and continued cool temps, I don’t expect to see much progress being made in the next 10 days.
Soybeans: As of 7:35 – Old crop Up 13, New Crop up 5
China’s economic numbers squashed the soybean bulls yesterday as did continued news on the spread of H7N9 flu and its implications on demand. So far 63 cases have been reported and 14 deaths. We haven’t mentioned it much lately and quite frankly it has been fairly quiet…..So how are things going in S America? Harvest pace in Brazil is at 82% vs 78% avg. Argentina is just ahead of last year at 24% vs 23%. As far as crop size, S. American crop consultant Michael Cordonneir kept his crop sizes for Brazil and Argentina unchanged at 81.5 and 50 mmt. (STILL LARGE)
Wheat: As of 7:45 – MPLS Up 4, KC Down 2
Crop conditions out yesterday showed little change in the HRW crop at 36% Good/Excellent. The jury is still out on the extent and severity of the damage to the crop thru KS, OK and northern TX in last week’s freeze event. No surprise to anyone that we only have 6% of the nation’s HRS planted. The snowpack map below shows why.