May 23 Monday Morning Wake Up Call
May 23, 2011
Every Monday morning, Pro Farmer editors record the "Monday Morning Wake Up Call." It's a recorded message available by clicking here.
But... if you'd rather read the report instead of listening, each Monday morning I'll update the copy from the call here to help set your agenda of key issues that will be impacting the grain and livestock markets in the week ahead.
Monday Morning Wake Up Call
Good morning ... this is your May 23rd edition of the Pro Farmer Monday Morning Wake Up Call.
The dollar is trading sharply higher this morning and crude oil is trading lower. That’s likely to weigh on grain prices as we start the week. Equity futures are also indicating a lower open at the New York Stock Exchange and there is a general negative attitude ahead of the grain open. That’s a change from the start of Sunday evening’s grain trade that saw corn, soybean and wheat futures start the session higher.
Early strength in the overnight session was based on the weather forecast calling for another wet week in the wettest areas of the Corn Belt. The Northern Plains are expected to see another round of rains, causing further delays to spring wheat and corn planting. The planting window for both of these crops is quickly drawing closed in North Dakota. The other area of concern is on the far eastern edge of the Corn Belt. Planting progress in eastern Indiana and Ohio is expected to remain well behind the five-year average in this afternoon’s Crop Progress Report. For the U.S., look for corn planting progress to be about 80% complete as of May 22. Crop-watchers this week should be turning their attention to soybean planting progress, but that will be delayed at least another week.
Along with planting delays and concern over new-crop corn supplies, increased export demand helped add to the upside momentum in the grain markets – and especially in the corn pit. Buying of both old- and new-crop corn emerged after the early-May sell off. After last week’s rally, however, don’t be surprised by a quite week of export demand.
Last Friday’s Cattle on Feed Report will be slightly negative for cattle trade to start the week. Heavy placements pushed total cattle on feed as of May 1 up 7% from year-ago. That will weigh on cattle prices, but certainly does not indicate a slowdown in domestic feed demand. The cold storage report will be mostly neutral for cattle, but should help support corrective gains in lean hog futures to start the week.
That’s your Pro Farmer Monday Morning Wake Up Call.