3 Big Things Today, March 1
1. Soybeans Up Slightly, Corn Steady
Despite good export sales numbers, corn, soybeans, and wheat all closed down yesterday.
“Export sales were great on all markets and should have helped. But there is still a lot of China uncertainty and Trump walked out on North Korea’s Kim, so maybe a little more uncertainty with China,” says Jack Scoville, PRICE Futures Group.
Scoville added, “The funds are doing the selling, not seeing any cash moving. Going to be real cold so winterkill possible in wheat and no one is going to sell. I think we can rally a bit tomorrow and maybe into next week wth the change of the month.”
In the overnight markets, May corn is steady at $3.71. May soybeans are up 3¢ at $9.13. Wheat is mixed, down 1¢ on the CBOT and in Kansas City and up 3¢ in Minneapolis.
2. No Regulatory Framework for Hemp Until 2020
After the 2018 Farm Bill legalized hemp production, there’s been a spike in interest from growers, wondering if hemp could increase profits in this era of low commodity prices. Hemp has been looked at as a third rotation crop for corn and soybean growers in the Midwest as well as a potential replacement for tobacco in the South.
While the legalization hurdle has been cleared, the USDA said it won’t have the regulatory framework in place for hemp until 2020.
“We want to proceed slowly,” said Ag Secretary Sonny Perdue, to preclude a land rush that could “blow out a market before it can get started.”
3. Bitter Cold Remains, Snow for Northern Plains
There’s no respite from the bitter cold temperatures that have set in over the Midwest and Northern Plains this week. The Northern Plains will continue to have temps well below average, dipping to 20˚ to 30˚ below average.
An upper-level energy system will bring snow to the Northern Plains Friday before moving to the Upper Mississippi Valley/Upper Great Lakes Friday evening. That system will continue east Saturday and into Sunday.