Corn up 2-3
Beans down 2-3
The May corn contract gained 4 3/4 yesterday, settling at $3.76 1/4. December corn was 3 1/4 higher at $3.98 3/4. The September and December corn futures are trading above the 100 and 200 day moving the average for the first time in nearly a month. Exports sales on corn came in at the lower end of expectations, but double last week’s sales. Funds have been sitting on a heavy short position. We’ll see if they continue to hold those positions through planting season, but this could spur a short covering rally with the wet forecast and flooding concerns. There is also a report from the USDA showing Chinese buying corn to the tune of 300,000 metric tons. Not a large amount in the grand scheme of things, but could this be the beginning of a buying spree? Hogs were limit higher yesterday and many news stories are talking about profitability becoming very favorable. Sounds like Canada, Mexico and China have all been back in the market buying pork the last few days.
May soybean futures were 4 1/2 higher at $9.10 1/2. The November contract was also up 4 1/2 closing at $9.44 3/4. However, soybeans are struggling to move upward with disappointing export sales, no U.S./Chinese trade deal, and the wet weather with flooding making many believe that corn and wheat acres will be switching to beans, adding to an overabundance of carryout. On the positive side, President Trump said a final agreement is progressing and “will probably happen,” during an interview with Fox News.
These markets are the perfect opportunity to work cash and futures offers as the markets have been moving higher the last couple of days and next week’s Planting Intentions Report and Quarterly Stocks report is now just a week away. There will be some positioning ahead of this report. Putting offers in now gives you an opportunity to take advantage of that, whether you are wanting to price Old Crop or New Crop corn and/or beans. Let us know what we can do for you.
Have a great day and a better weekend.