A week of weather, planting progress and the implications of demand!
Its Memorial Day weekend and we would like to wish everyone a safe holiday. The grain markets closed firm with December 2016 corn ending the week strong at $4.134 and November 2016 soybeans at $10.562. Corn and soybeans are firm on the assumption of the potential loss due to dry weather in areas of Brazil and increased demand.
The USDA Crop Progress Report will be out on Tuesday due to the holiday and corn should be 95% done. Honestly this crop has gone in without any real problems. Soybeans should be around 75% with a chance of rain to fall on most newly planted areas.
Look for the market to stay volatile looking for news to determine trend. After the progress report, the Supply/Demand report on June 10th should show the market production loss in Brazil and Argentina. If it is less than the market has already anticipated, look for the markets to trend lower until summer heat or weather issues become an issue.
At these price levels, one should take advantage or have a plan in place for cash sales of the 2016/17 production. If you have questions and would like to discuss 2016 marketing strategies, call Bob or Laura (1-800-832-1488). We welcome emails to [email protected] or [email protected].
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