April 17, 2013
Producer Marketing Manager
Yesterday’s theme…….“Turnaround Tuesday” in most commodities after Monday’s selloff. Corn and beans gained 16 cents on nearby months. Dec corn was up 8 and Nov beans gained 12 yesterday.
Corn: As of 7:45 - Down 1
We will get weekly ethanol production data this morning. Margins have tapered off since last week’s release of our strongest run rate since last June, will we be able to hold that pace? US corn planting is starting to take center stage. Below is the map of projected precip in the next 7 days. It doesn’t look like we will see much progress done on corn planting this week.
Soybeans: As of 7:45 Up 1
I realize it is still the middle of April and we can put our crop in the ground with amazing speed, but the market is closely watching and weighing the effects of the weather and pace of corn planting. Will we see an acreage shift to more beans if we stay cool and wet? The nearby spreads continue to strengthen as the May-July inverse is up to 38 cents overnight, as old crop supplies remain tight.
Wheat: As of 7:45 - MPLS Down 3, KC Down 4
In the wheat market it seems to be mostly about weather as the HRS areas are still snow covered. Sub-freezing temperatures are in store for HRW areas Thursday and Friday mornings, reaching as far south as KS, OK and TX where a considerable amount of the crop has jointed and is temperature sensitive.