Evening Comments – March 23, 2018
USDA Planting Intentions and March 1st Grain Stocks report out March 29th at 11 AM
Corn: North Burt up 1 @ $3.28
- The corn market traded lower early in the session, but turned higher on borrowed strength in the wheat market. The May closed just shy of its 40-Day MA of $3.77 ¾ and the July closed just above its 200-Day MA. May closed at $3.77 ¼, up 1 ¼ cents, July closed at $3.85 ¾, up 1 ½ and December closed at $3.99 ¼, up 1 ¼ cents. Weekly export sales were decent at 1.5 mmt, but were at the low end of the trade estimates. 100,000 tonnes were reported going to China. Users are said to be getting covered through July, at which time the US could see renewed world competition. For the USDA report next week there are thoughts that the US acreage and usage could be larger than expected. IL corn planting not expected to take place in March because ground temperatures are only in the 30-40’s. The number of corn and bean acres are not expected to change much from last year (11.2 million acres of corn and 10.6 million acres of beans).
Soybeans: down 1 @ $9.38
- The soybean market spent the day clawing its way back from its lows, but failed to make it back to positive territory in the May, July and August. Prices were pushed higher in part by strength in the soymeal market. Soymeal finished $9-$10 stronger and soyoil finished 45 points lower. Brazil’s soybean harvest is estimated at 65% complete versus 58% last week, 68% last year and 62% on average. Weekly export sales of 899 tmt were in line with trade estimates. China counters President Trump’s trade tariffs with a list of their own. Pork and dried fruits being a couple of the items on the list.The blessing was that beans did not make the list.