May 4, 2017
Drew Johnson
Grain Marketing Specialist

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Corn: 3 lower

Corn found some support at the end of the day, yesterday, as short term weather predictions add to the woeful issues in Missouri and Illinois. Extended weather forecasts are turning drier for that area, and should help with planting delays. Ethanol production was at 986,000 barrel per day. Inventory slipped from 23.3 million barrels to 23.2 million. Export Sales for the week were reported at 31.3 million bushels. This was down 8 million from last week, but we still are ahead of USDA predictions for the year. Brazil and Argentina’s corn crop is coming off nicely and is helping keep the lid on US prices. Technically corn futures remain range bound. We are holding support at $3.70 for July and $3.88 for December futures, respectfully.

Soybeans: 2 lower

Soybeans, again, attempted to climb out of the basement yesterday. This is all very interesting, because the argument, going forward, will be, how many acres can be retrieved, that will now go to soybean production, in Kansas, Missouri and Illinois? Export sales, reported this morning, came in at 12.2 million. This was down from 29.6 million last week, but we are still meeting USDA predictions. Funds remain in a long positon. The largest net long position in two years. Brazil and Argentina’s harvests are going well. Technically we are going to have a hard time pushing through $9.80 July futures and $9.70 November futures.

Wheat: MPLS 4 lower. KC 5 lower.

Wheat markets fell some as traders await news from The U.S. Wheat Quality Council's Hard Winter Wheat Tour. Tuesday’s reports suggested a 43 bu/A type yield in Kansas. This is down from the projected yield of 47 bu/A. Yesterday, the tour canvassed some of the area hit by the blizzard. They reported some snow left in the area, and yield predictions are better than expected. Export sales, reported this morning, were at 30.2 million bushels. Most of those sales were for the New Marketing Year. This was up 16.7 million from the previous week.