Friday morning's USDA prospective plantings report has been one of the most talked about reports in the past decade. 

My numbers are slightly different that the "trade estimate" averages.  The main issue I see with these reports are they are based on 85,000 farmer surveys over the first 2 weeks of March.  A lot can and has changed over the past two weeks that could alter what a farmer is going to plant. 

The ratio of new crop corn to new crop soybeans is traditionally around 2.3.  When soybeans are 2.3 times the price of corn, there is little price incentive to plant more of either crop.  The current spread is 2.47, meaning there is a slight incentive to plant soybeans instead of corn.  This may in fact increase the amount of acres of soybeans and lower the amount of corn planted. 

Happy Trading,

Justin R. Lewis, M.B.A.

V.P. - KIS Futures, Inc

Direct: (877) 431-9805

Cell: (580) 335-1602

Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition.

Grain futures are higher across the board with soybeans and wheat leading the way.  May soybeans are up 15c and Nov. beans are 13c higher.  May Chicago wheat is up 16c while September is up 12c.  Corn futures are the weakest this morning, but still 9c higher in May, and 6c higher in December futures.

Wheat is the biggest surprise this morning.  There was a large move at 9:35am that spiked wheat futures up nearly 25c and it broke through previous resistance.  Fund traders are looking for value in the grains and wheat seems to be a reasonable value at this level.

Corn Futures are 6 to 9c higher.  Corn planting is almost complete in the south and getting started in the midwest.  Early weather conditions have been mostly favorable up to this point.

News reports suggest that U.S. and British petroleum reserves will be released in the near future, driving down crude oil this morning and perhaps keeping a lid on the price of corn.

Live cattle are .10-.50 higher and feeder cattle are steady.

Call me with questions or comments (877) 431-9805.

Justin R. Lewis, MBA

Follow me on Twitter: @jlewis58

There is a significant risk of loss when trading futures & options contracts.  Investors should carefully consider whether trading futures is appropriate based on their own financial situation.

Mid-Day Summary

Corn & Wheat futures have been strong & near their morning highs all morning while beans opened lower and rallied slightly.

Corn futures are showing there is continued demand for "old crop" corn and no deliveries up to this point.  The majority of demand is in the world export markets, since domestic ethanol and cattle feeding are slightly unprofitable at this point.  Wheat futures are following corn futures this morning.  The southern plains received significant rain through the weekend and warm temperatures over the next days will push wheat further into development than normal for this time of year.  Unless there is a freezing weather event into the southern plains, wheat looks slightly bearish from a fundamental standpoint.

Live & Feeder Cattle have continued their down move today after last week cash trade was $126-27.  Boxed beef has also lower today.

Happy Trading,

Justin Lewis, M.B.A.

(877) 431-9805