Grains Await New Data in Quiet Trade (Mar 26)
Mar 26, 2013
Grain markets were mostly quiet overnight with changes limited to a few cents up or down across the board as traders await key supply and demand data on Thursday from USDA.
New-crop corn prices have been firming of late as thoughts of farmers planting fewer acres than was originally anticipated a few months back. Soybean prices have climbed relative to corn over the past few months which has some traders looking for only a small increase in corn plantings over last year. Furthermore, extreme cold in the key areas of the Midwest make early planting unlikely which could build more premium into the corn market as the calendar turns to April next week.
For soybeans, Monday brought fresh sales from China as private exporters reported to the USDA an export sale of 234,000 MT of soybeans to China for the new-crop 2013/2014 marketing year. However, new business on old-crop beans continues to be non-existent, but the pace of exports and export sales is still well ahead of what is needed to hit USDA’s annual export target.
In wheat, the cold snap across the Plains has some concerns about freeze damage as crops there begin to enter the jointing stage. Weekly state crop condition information showed steady to falling crop condition scores for wheat and an overall poor state of the wheat crop. Kansas held ground at 29% of its wheat crop in good-to-excellent condition this week, while Nebraska’s first reading of the season showed only 6% of the crop in good-to-excellent condition.