COMMODITIES | AGRICULTURE
RCM Grains Morning Wire
CN -2¼ CZ -5 SQ +21 SX +5 WU +2 ¼ KWU +4 ½ MWU +2
- Markets trading mixed overnight with old-crop beans seeing big gains and corn adding to the losses seen Friday.
- The biggest surprise Friday was the corn acreage number, which increased from March 30. With the bigger corn acres, there is room for yield to come down, PP acres to drop harvested acres, and still have plenty of corn for next year.
- The bean acre number was actually on the supportive side, coming in toward the lower end of expectations. With PP acres likely to drop that number, a lower yield will leave things tight again on the bean balance sheet for next year.
- The stocks numbers were on the supportive side across the board. Old-crop beans have reacted accordingly.
- The larger number of corn acres in the south with TX corn acres up 300,000 from March, will increase the amount of new-crop corn that can make it into the old-crop supply to help bridge the gap until corn harvest starts in the heart of the Corn Belt.
- Wheat traded to multimonth lows overnight before rebounding and is trading with a small gain.
- South Korea’s Nofi announced a corn tender.
- Crop progress out this afternoon with corn and bean ratings expected to jump 3% to 4% in the good to excellent category.
- Cash corn firmed after Friday’s drop in futures. Most bids are off the September, but buyers in the Corn Belt are paying 1.30 to 1.50 over across Nebraska, Iowa, and into Illinois. Cash beans also strong with most bidding well 1.00+ over the August.
- Commitment of Traders on Friday showed little.
- Friday’s Hog and Pig report showed 100% of last year (average guess 100.5%), which shouldn’t be a major market mover.
No other content from this user
This container should display a .swf file. If not, you may need to upgrade your Flash player.
The Future of Livestock Production