Afternoon Grain Market Commentary for 4/8/2013

Afternoon Comments 4/8/2013

Monday, April 8, 2013, 3:16 pm
Submitted by: Kyle Lehman

Corn closed mixed with nearby corn closing 4 ½ cents higher while new crop corn closed 3 cents lower. Nearby corn was pushed higher as traders start to liquidate shorts prior to Wednesday’s USDA report combined with the lack of any hedge pressure. New crop corn closed lower on weather patterns indicating spring outlook to be above normal precip alleviating some of the drought concern. Estimates for Wednesday’s S&D are projecting corn carryout to increase to roughly 900 mln bu.

Soybeans also found some support from short covering prior to Wednesday’s report. Weekly export sales came in at 15.2 mln bu with China accounting for more than half of that total. At this point the US only needs to export 5.8 mln per week to meet USDA projections.

A large storm is supposed to hit the Delta stretching to the Eastern US this Thursday. Projections show the corn belt could receive up to 2” of rain (map below) followed by some cold temperatures.

*New Crop Corn Survey from Farm Journal Pulse:

2013 Corn Production sold or priced

None: 53%

1-25%: 24%

26-50%: 11%

51-75%: 4%

76-99%: 3%

100%: 4%