Afternoon Comments 4/16/2013
Tuesday, April 16, 2013, 3:41 pm
Submitted by: Kyle Lehman
The old “turn around Tuesday” made an appearance today as
corn and beans both put in a productive performance. Corn closed 16 cents higher
on very little new news. Today’s action can be contributed to outside markets
settling down after yesterday’s abysmal performance. The recent weather patterns
may be providing some support as corn planting came in a 2% complete (the
slowest pace since ’93) vs 7% on average. The 2% planted matches 1993, 2008, and
2009 which all but 1993 seeing above trendline yields (1993 of course is known
for floods).
Soybeans also closed 16 cents higher as pressure from
outside markets was alleviated. Old crop prices have rallied 51 cents over the
past week as old crop ending stocks remain tight and with processor margins not
backing off there is a feeling demand still needs rationing. If planting delays
persist new crop beans may see some pressure as trade will focus on corn acres
turning to beans.
The 5 day QPF shows the Midwest receiving 1-4.5” of rain this
week. Temperatures for central Iowa are to remain below normal until the end of
the month (temperature graph below) with highs in the 40’s later this
week.
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