Walsh Commercial Hedging 3/30/12
Mar 30, 2012
Good afternoon. Out of todays two pivotal planting and supply reports, the Prospective Planting’s Report was the big shocker of the day. All of the numbers that came out were not even inside the analyst’s range of estimates. The USDA pegged corn planted acreage at 95.864 million acres compared with trade expectations at 94.7 million. This is the highest planted acreage since 1937. Record amounts are expected to sown in Iowa, Minnesota, North & South Dakota, and Idaho. Soybean plantings were pegged at 73.9 million acres, increasing concerns about tightening global supplies of the oilseed due to poor harvests in South America. Analysts had expected soy plantings to increase to 75.393 million acres. All wheat acreage for 2012 came in at 55.908 million acres compared with trade expectations for 57.4 million. For the Grain Stocks report, the only surprise came out of corn with March 1st stocks pegged at 6.009 billion bushels as compared with trade expectations at 6.15 billion which is about 140 million fewer bushels of corn than expected. With weather looking pretty favorable for planting in the following weeks coupled with a lower stocks report, the trade saw the CK/CZ spread surge up 24 cents for the day closing at 103 ¾. The report was considered very bullish for November soybeans. The market may need to push above $1400 into the planting season to attract more acres. All in all, the focus now will be on Mother Nature, as a continuation of the unusually warm conditions could favor an even larger corn crop.
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. Have a great weekend!
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