Corn Planting Could Reach 50% By Weekend
Apr 28, 2015
Good Morning! Paul Georgy with the early morning commentary for April 28, 2015 at 5:15 am.
Grain markets are mixed as planting progress weighs on corn. Soybean futures are getting strength from outside influences such as weaker US Dollar and firm crude oil prices.
Weather's Impact on Grains This Year:
As planting continues throughout the US, we'll update our weather outlooks in our next live webinar, tonight at 8:00 PM CDT. Register Here
Update - Morning Coffee Commentary:
USDA says that 19% of the US corn crop is planted and 2% of the soybean crop. The goal of having 50% of the corn planted by May 8 seems very possible as the average progress for this week is 20%. Current moisture and field conditions combined with open weather should allow Midwest farmers to plant faster than average this week.
The weather models are projecting more heat and moisture for next week which should get the crop off to a great start.
Winter wheat conditions remained at 42% while trade was looking for a 1 to 2% improvement. However spring wheat planting progress jumped to 55% versus 29% average.
Wheat futures are struggling due to planting progress and technical selling. However the soft red winter wheat grown east of the Mississippi River has been very wet which has producers concerned about disease issues. Travelling to southern IL this past weekend we saw very uneven wheat fields with drown out and winter kill evident.
Weekly export inspections were 1.294 mmt for corn, 311,622 tonnes of soybeans and 543,929 tonnes of wheat. All the shipments were larger than what trade was expecting.
Archer Daniels Midland Company announced that it is investing to give the company`s Enderlin, North Dakota, processing plant the ability to crush soybeans in addition to canola and sunflower seeds.
Russian grain exports for the current marketing year totaled 27.4 million tons of grain, compared with 22.4 million tons in the corresponding period last year.
Russia's recently appointed agriculture minister has set a goal of increasing the country's grain production to 110-120 million tonnes per year in the near future, reported by the RIA news agency.
FOMC meeting starts today and runs through tomorrow. Comments from the meeting should be released at 1:00 pm central time. Trade is not expecting any major changes but hoping for a clearer picture when the Fed will raise interest rates.
Plenty of economic data this week but trade is setting their sights on the employment numbers on May 8.
State officials in Iowa say that bird flu virus has been found in four more northwest Iowa poultry farms affecting more than 2 million chickens. The latest cases include three commercial laying operations and one farm that produces young hens. The largest operation is in Sioux County, with 1.7 million birds in a commercial egg-laying farm.
Livestock futures reacted to the somewhat bearish Cattle-on-Feed Report with a rally after the open on Monday. Cash cattle are expected to trade steady to lower than late week values. Showlists in the southern and central plains feedlots increased slightly compared to last week. Beef production estimates are expected to increase this week by as much as 10,000 head. When combining heavier than year ago weights total beef production could be up as much as 2% this week.
Lean hog futures premium to cash is tugging on the rallies. However industry contacts are expecting an improvement in pork demand due to retailers profit margin on pork compared to beef.
Dressed beef values were mixed with choice down .10 and select up .36. The CME Feeder Index is 214.35. Pork cutout values are up .92.
Markets as of 5:15 AM CDT
- May Corn - 3/4
- May Beans 3 1/2
- May Wheat -2 1/2
- May Soymeal 1.10
- Jun Dlr -.32
- Jun S&P -3.50
- Jun Crude -.10
- Jun Gold -1.60
Technical Chart of the Day
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