Sep 17, 2014
Home| Tools| Events| Blogs| Discussions| Sign UpLogin

Neck-and-Neck Race in the Grain Markets

May 3, 2013
corn soybean

The grain markets shot out of the starting gates this week with limit gains in the corn market, while the soybean and wheat markets were sharply higher. The lack of follow through on Tuesday disappointed the trade and allowed the markets to pull back.

The biggest midweek loser was the soybean market as continued signs of a slowing Chinese economy and cancellations of soybean sales to China weighed on the market. The positive news in Thursday’s export data once again were strong soybean meal sales which now stand at 103% of the current USDA estimate for the marketing year. This indicates that the soybean crush will remain strong unless prices surge to protect what little remains of last year’s production.

While producers in Illinois were dealing with muddy conditions, those in Iowa, Minnesota and other states were dealing with up to 5-10 inches of snow. This kept the corn market well supported, however it was again disappointing to see a failure to take out Monday’s high in July and December corn as the week hit the backstretch.

As the grains turned into the homestretch, technical pressure to corn and wheat lead to lower closes on Friday. The forecast for the following weekend will be watched closely as trade resumes on Sunday night when the next organized rain event is expected. Producers should continue to look at rallies as opportunities to add to hedges or to sell some short dated call options that expire in late June.

U.S. planting progress is barely past the first quarter pole, but will eventually cross the finish line. This may lead to seasonal pressure, however the conditions this spring will only add to the volatility this summer as additional crop concerns are now in play.

With that said, have a great Kentucky Derby weekend and for what it’s worth, I look for Normandy Invasion to cross the finish line first on Saturday.

(click to view larger image)

movement 0504

weekly 0504

COT 0504

See Comments

RELATED TOPICS: Corn, Soybeans, Wheat, Marketing, Analysis

Log In or Sign Up to comment


No comments have been posted



Receive the latest news, information and commentary customized for you. Sign up to receive Dairy Today's eUpdate today!



Market Data provided by
The Home Page of Agriculture
© 2014 Farm Journal, Inc. All Rights Reserved|Web site design and development by|Site Map|Privacy Policy|Terms & Conditions