Morning Comments April 16, 2018

Opening calls:

Corn down 1-2

Beans up 2-3

 

Friday, the May corn contract closed 2 1/2 lower settling at $3.86 1/4. The December contract closed 2 3/4 lower at $4.10 3/4.  For the week, May contract closed 2 1/4 lower, and the December contract closed 1 3/4 lower. Friday’s CFTC reports showed funds remain bullish adding almost 35,000 long contracts to net at almost 175,000 contracts long. Brazil’s 2nd crop is progressing well, but there are some concerns about dry areas developing.  At some point, the cold/wet weather in the Corn Belt should drive support into the corn market. 

 

The May bean contract closed 6 1/2 lower Friday, settling at $10.54 1/4 and the November contract was 4 lower settling at $10.49 1/2. For the week, May closed 20 1/2 higher, and the November closed 16 1/4 better. Friday’s CFTC report showed that funds are becoming bearish as they were sellers of 5,200 contracts, but funds remain long overall. Support from beans is coming from soymeal. 43% of the world’s soymeal originates in Argentina, and they have begun importing beans from the U.S. to meet their crushing demand. Beans also continue to find additional support from trade negotiations with China. In other Argentine news, after 26 years, they have lifted their imported ban on U.S. pork. 

 

I hope everyone stayed safe in our latest round of winter weather. Don’t forget any Extended Price Contracts that are due this week need to be sold or need to be rolled; please contact your local GMA to get this done.

 

Thank you!