Up Overnight, Export Sales Today...
Apr 12, 2012
· Grains mostly higher overnight; Old crop corn contracts caught a bid late in the day yesterday as they traded within the March 30th report day range; Beans unable to hold below 1420 in the May contract despite a chart reversal on Tuesday
· Freezing temps seen across much of the country overnight; Most forecasters describe the threat to corn and wheat as being minimal; Market action certainly doesn’t reflect any major issues; Warm weather and rains to return this weekend; Colder temps again next week with possible freezes in far northern areas
· Export Sales this morning at 7:30am CST, pre-report estimates:
o Wheat 350k-650k mt
o Corn 450k-850k mt
o Soybeans 700k-1.1 mmt
· Cash bids for corn mostly firm; Farmer selling decreasing as prices have dropped and planting begins
· Outside markets mostly supportive for commodities this morning, US$ lower with crude and equities higher
Despite reports of freeze/frost issues in some areas, planting conditions are very good for the most part. Minor delays could be seen next week due to rains, which are welcome in most areas of the Corn Belt. According to our lead forecaster, “48% of projected corn production received less than half of its average rainfall in the last 30 days; Rains are needed.” Freeze/frost could again be seen in far northern areas again next week, but shouldn’t be a concern.
A weather issue may be a producer’s best chance for a rally in new crop corn during the next several months. Without a major event that could point to lower yields, a rally of any significance will be difficult to attain.
As always, call the office with questions or concerns.