Afternoon Grain Market Commentary for 4/1/2013

Afternoon Comments 4/1/2013

Monday, April 1, 2013, 3:32 pm
Submitted by: Kyle Lehman

Markets closed lower on follow through selling after Thursday’s report. Liquidation for the corn market continued today with funds sellers of 20k contracts which drove nearby corn to close 53 cents lower. End user pricing was heavy and kept corn from closing limit down for the 2^nd consecutive day. Futures have lost 93 cents since the close on Wednesday of last week. As expected traders have started the debate over accuracy of the USDA figures. The talks now are how the USDA will reflect larger stocks in the April S&D. With the current figures ending stocks would increase roughly 300 mln. bushels. Feed will undoubtedly need to be reduced unless last year’s crop size was underestimated.

 

Soybeans closed 14 cents lower as funds were sellers of 6k contracts. Similar to corn soybean traders are scuffling over the USDA figures as export sales haven’t seemed to slow down as expected due to South America logistic issues. Export sales came in at 16.3 mln (well beyond pace to reach USDA figures) with 11.1 mln coming off the PNW pointed to China.

Weather will be a hot topic the next couple of weeks as we near the start of planting. The pattern shifted slightly from last week as the 6-10 day forecast is calling for slightly above normal temps with above normal precip.

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