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The sun is shinning, it is a new day, a new month, a new quarter and prices are higher. This is where you expect the April Fools joke right? That is not to be the case as markets appear to have shaken off the post-report blues for the most part and can now look in other directions for market direction. While every now and then there will be a report that creates a shift in the tectonic plates and the landscape never really looks the same there after but the numbers released yesterday by no means fell into that type of monumental category so little more than a one day reaction is not unexpected. For the record, yesterday funds sold around 20,000 contracts of corn, 9,000 wheat and purchased 6,000 beans and 3,000 meal. Remember, corn was the one market they we not holding a short position in and appeared to be trying to make up for that. We covered the report in more depth on our monthly letter published last night so I am not going into the details again this morning but as we summarized in that paper, weather is the name of the game moving ahead. (For a copy email; firstname.lastname@example.org). Yes, bean acreage did not increase as much as expected but it is still a record and corn acreage did not drop as much as expected but it is still the third year in a row of smaller intentions (-8 million from 2012) and at the end of the day, or season in this case, an average crop will still leave us with more than sufficient inventories. Welcome again to the 1990’s.
The domestic weather outlook calls for several moisture systems to move across the plains and the upper Midwest over the next 10-days which I am sure will be welcomed by most. Will there be rain on Easter Sunday? If there is I believe the old folks tale says we will have seven more Sundays of rain thereafter. Showers are forecast to return to the Delta by the weekend.
Solid progress continues with the South American harvest. Dr. Cordonnier reports this morning that in the state of Mato Grosso, which is the largest bean producing state in Brazil, harvest has reached 94% complete.
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