Joseph Vaclavik is the president at Standard Grain in Chicago. Standard Grain provides futures and options brokerage to farms, feedlots, elevators, processors, end-users and traders. Visit www.standardgrain.com for more information.
Beans Rally, Corn and Wheat Drag
Mar 26, 2012
· Grains mixed overnight; Soybeans again exhibiting impressive strength while corn and wheat trade near unchanged; Dec corn seems comfortable in the 550-560 range for the time being, however we don’t rule out a move to either side of the recent trading range this week
· USDA will release its Prospective Plantings and Quarterly Stocks report on Friday at 7:30am CST
· Average trade guess for corn acreage at 94.7mil; Soybean acreage estimated at 75.4mil; Traders looking for corn stocks near 6.15bil/bu, soybean stocks at 1.39bil/bu and wheat stocks near 1.2bil/bu
· Outside markets mostly mixed this morning; No major moves in currencies, equities or outside commodities
· Some chatter over long term China corn demand; Chinese gov’t estimates a 17mmt corn deficit in China by 2020; Oilseed Forum taking place in China also spurring some bullish demand talk for soybeans
· Corn planting moving forward across the South and event in many Midwestern states; Weather forecasters warn that there are still opportunities for a freeze even into late April
· Cattle on Feed released Friday; Seen neutral to slightly negative for cattle/feeder cattle markets
· Funds added to long corn and soybean positions in the week ending last Tuesday; Cut short wheat position slightly
Corn and wheat markets will likely hold recent trading ranges into Friday’s report. Soybeans certainly look poised to move higher, however a technical correction of major significance could occur at any point. Grain producers have 4 days to shore up their hedge positions and do some marketing. Opportunities are available in both corn and soybean depending on your specific situation.
As always, call the office with questions or concerns.