April 12, 2017
Producer Marketing Manager
The main theme out of yesterday’s S/D report was slightly larger US carryouts and growing South American crop sizes.
CORN: As of 7:45 – Steady
In yesterday’s Supply/Demand report the balance sheet was left unchanged for corn at 2.32 Billion bushels…..a 50 million bushel increase in ethanol grind was offset by a 50 million bushel drop in the Feed/Residual category. Bearish news in the market came from an increased S American production number as USDA raised Brazil by 2 MMT….this is 40% larger than last year’s drought reduced corn crop. Turning to weather, it looks like planting opportunities will be limited for the next 10 days.
SOYBEANS: As of 7:45 – UP 6 overnight
The US soybean carryout was 10 million bushels larger than last month at 445 million. Seed demand was increased 9 mbu and residual demand was down 19 mbu for the net gain of 10 to this year’s carryout. Like corn, the most bearish info that came out of the report was the increasing size estimate of the Brazilian crop, now estimated at a record 110 MMT, and Argentina estimated at 56 MMT.
WHEAT: As of 7:45 – MPLS up 3, KC steady
The wheat markets also had larger carryout figures in yesterday’s report, but manage to fair the best at the end of the trading session as the MPLS contract was up 8 cents and the KC ended up 4 on the day. HRS Carryout was increased by 6 million bushels to 195 mbu, yet still remains the tightest of the 3 major wheat classes in terms of stocks to use.