Morning Comments 4/12/2013
Friday, April 12, 2013, 8:17 amSubmitted by: Kyle Lehman
Markets are higher this morning led by wheat. The USDA finally confirmed rumors of China purchasing US origin wheat which has provided some support to the corn market. Despite negative outside markets, commodities have managed to rally overnight on seemingly all weather news. Not only has the cold and wet weather slowed planting efforts here in the US but China is seeing similar conditions with neither of our forecasts expecting conditions to improve in the next 10 days. Monday will be the first US corn planting estimates which is expected to come in near the average of 5% but well behind last year’s record pace of 17%. Weather models suggest another weather event similar to this weeks to occur the first part of next week with snow expected in the Northern Plains and sub-freezing temperatures to reach as far south as Oklahoma.
Argentine bean harvest is estimated to be 24% complete as the weather has allowed harvest to progress without any delays. Talk of demand spurring up out of Europe has provided the soybean market a little support this morning. Brazil announced they will bump their biodiesel blend up to 10% soy oil from the current rate of 7% using an additional 300k MT.
Outside markets are taking a beating this morning on unfriendly economic data. Currently crude is down $2.01, metals down, equities down, and the dollar higher.
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