Thursday, February 21, 2013

A.M. Grain Market Commentary for 2/21/2013

2-21-13 AM Comments

Thursday, February 21, 2013, 8:10 am
Submitted by: Jon Setterdahl

Mainly 2 discussion points this morning….first is numbers from USDA Feb Outlook meeting in D.C.  Corn planted acreage projected at 96.5 Mln and resulting crop size a whopping 14.530 Bln bu. Obviously they are using a very good yield number to arrive at that production. Soybean acreage estimated at 77.5 Mln and resulting crop size of 3.405 Bln.  These sort of numbers would not be entirely unexpected from this outlook meeting…they always use pretty good yields (citing genetics, farming practices, etc) this early in the year. Never mind the current drought monitor maps. The full balance sheets will be out tomorrow.
Other issue is weather….parched areas in the west to get a lot of rain/snow with this current system, and also talk of another less potent precip event early next week. Maybe the weather pattern is shifting??

Outside market factors has crude oil down again this morning (when will gas prices follow?) and the US $ slightly higher.  Weekly export sales will be out tomorrow and weekly ethanol data should be out this morning. This will be looked at closely since some idled ethanol plants have come back on line recently.

Morning markets thus far are slightly lower in both corn and beans.

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