Morning Comments May 24, 2019

John Deere Planting 21

Opening Calls:

Corn: Up 5-6 cents

Soybeans: Up 4-5 cents

July corn closed down 4 ¾ yesterday ending at $3.89 ¾. December corn finished down 4 ¾ at $4.08. This morning corn is trading higher. The announcement of another round of direct payments to farmers, raised concern that the current U.S. – China trade war will continue to drag on. The bigger issue at the moment is the weather as rain continues to slow planting progress. This is becoming more of an issue as we see reduced yield potential with each day that goes by.

Yesterday July beans ended the day down 7 at $8.21 ½. September ended the day down 7 at $8.48 ¼. Beans are trading higher this morning as well. News of the new trade aid to be dispersed for the upcoming crop year, helped to push back some of the recent gains in the bean market. It appears the way the program is designed, producers may be discouraged from enrolling acres into Prevent Plant. Planting progress continues to be delayed as wet conditions remain in the forecast for much of the Midwest especially west of the Mississippi river.