Planting Progress Behind Expectations
Apr 18, 2017
Good Morning! Paul Georgy with the early morning commentary for April 18, 2017.
Grain markets are mixed with corn and wheat finding bargain hunters and soybeans under pressure with China's increased acreage in 2017. Stock indices are lower as traders are concerned about French elections and North Korea’s next move.
Allendale's April Ag Leader’s Webinar is set for April 25 at 8:00 pm central time. This month we'll speak to AgriGold Agronomy Manager, Mike Kavanaugh about the potential of the 2017 corn crop, and his thoughts on acreage expectations. Click here to sign up for the free webinar.
Nationwide corn planting advanced from 3% last week to 6% complete as of Sunday. This was under the 8% pre-report trade estimate. It is also under last year’s 12% and the five-year average of 9%. Weekly soybean planting estimates will not be shown until next Monday the 24th.
Spring wheat planting advanced to 13% complete which was just under the 14% pre-report trade estimate. Planting remains behind the five-year average of 21%.
Winter wheat good to excellent ratings increased to now 54% which was on the trade estimate. However, it fell short of last year’s 57% which resulted in a record wheat yield. Kansas, the largest winter wheat producing state had G/E conditions improve from 48 to 51%.
NOPA crush disappoints trade with 153.060 million bushels of soybeans crushed in March, trade estimate was 156.728 million bushel. This was 2.3% under last year which makes the USDA whole year soybean crush difficult to attain.
Stats Canada will release their estimate for 2017 crop seeds on Friday morning. Trade estimates suggest a reduction in all wheat acres from 23.21 last year to 22.4 in 2017. Canola acres are expected to increase from 20.36 in 201 6 to 21.3 in 2017.
French Elections for President begin this week with the first round. Le Pen’s win could cause further uncertainty in world macro markets as she is running on the campaign of France exiting the EU.
Fed cattle showlist were down 6,000 head. Feedlot sales last week were aggressive on a $4.00 plus cash price. This news is good for the industry as it surely keeps feedlots current.
Fed Cattle Exchange auction starts at 10:00 on Wednesday. There are 4446 head consigned.
June cattle futures continued to climb to new highs. Open interest in cattle futures sets new record highs suggesting bulls hold the strong hand.
Cash hogs start the week steady to lower as hog supplies are plentiful due to a packer holiday last week. Producers in the Midwest are cleaning up market ready hogs as they hope to be in the field in a few days.
Lean hog futures remain in a trading range in the June contract with 72.00 level providing support and 74.00 level resistance.
Seasonal tendencies suggest hog prices could work higher in to the summer. Traders are waiting for some type of confirmation a low has been made.
Dressed beef values were higher with choice up 2.05 and select up 1.30. The CME Feeder Index is 133.82. Pork cutout value is up .38.
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