Corn: Down 5 to 6
Beans: Down 5 to 6
Last week, corn found nearly 8 cents on the week and beans gained 7. The trade will look to the planting progress report out today. We landed just short of expectations on crop conditions last week. Good to excellent crop conditions for corn are expected to be about 72% and 66% for beans. Both are right around the longer-term average for this point in the season. Managed money continues to be very short on corn accounting for 18% of the open interest. Even with the rallies last week, it hasn’t been enough to get the market to push further past key resistance levels. Estimated acres planted seems to be closer to 93-95 million instead of the massive 97 million the USDA projected a couple of months ago. The supply side is still too strong and there is enough demand degradation to really allow prices much room on the upside.
Beans have been more dependent on the U.S./Chinese relations as arguments and speculation continue over the Phase One trade deal. Reports are that China has halted 2 state-run purchasing agencies from purchasing U.S. soybeans and pork. This halt has not been given to private institutions at this time. Before this news was released, there were reports that these institutions had inquired as many as 20 cargoes of soybeans from the U.S.