Good morning!
The soybean markets continues to impress with another rally overnight – making new contract highs (old crop). The big bullish story yesterday (which appeared to carry-through into the night session) was the NOPA crush report which showed a surprisingly large amount of beans crushed last month. 12 million bushels more than we crushed in Feb and 16mb more than we crushedlast March. The market is trying to ration demand and this report shows demand may actually be increasing – hence the higher prices.
The issues in Russia/Ukraine have not gone away, in fact they may be escalating. Of course no one really knows what will come of this but tomorrow officials from U.S./EU/Russia/Ukraine are meeting in Geneva, Switzerland to discuss possible resolutions.
The weather for the US corn belt is showing a rise in temperatures with normal to above normal precip in the 6-10 day forecasts (maps below). This should help get corn planting rocking and rolling in many areas. Some private analysts are predicting (based on the weather forecasts) that the US will be 40% done with corn planting by the end of April which would be a great start!
Corn prices seem to be stuck – soybean and wheat prices have been firm, corn demand has been strong, Ukraine is still having issues – all of this should be friendly to corn prices. However, improved planting weather and the ability of the US farmer to plant corn faster than he ever has before has the market cautious about getting caught long.
The outside markets are higher this morning with Crude Oil higher at this time (UP 103 @ 104.78) along with a higher US Dollar (138.37 vs. Euro) and the US stock market is higher (UP 72).
Opening calls
Corn steady to down 1c
Soybeans 8 to 15 cents higher (led by old crop)
Have a great day!
@fccoopgrain
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