April 22, 2014
Corn futures closed higher on Tuesday to recover all of what they lost during Monday's tumble to a three-week low as concerns about slow planting in the U.S. Midwest fueled gains.
Soybeans closed lower following reports that South American soybeans and soymeal will be headed to the United States. About 125,000 tonnes of Brazilian soybeans were switched from China to the United States while 40,000 tonnes of soymeal were scheduled to be loaded in Argentina for shipment to the United States, Reuters reported quoting shipping sources.
Winter wheat futures finished higher after Monday's sharp drops as the dire condition of hard red winter wheat crop has made it hard to push the market lower.
Corn closed higher a day after USDA reported late on Monday that only 6% of the U.S. crop was planted, well behind the 14% average.
Futures dropped early and slipped under the 200-day moving average near $4.90, but quickly rebounded to post their highest close in three sessions.
Dry weather was forecast for much of the eastern Midwest this week, but wetter conditions were likely next week, according to Commodity Weather Group's midday forecast.
Chicago May corn closed up 7-3/4 cents at $4.96-1/4 and new-crop December up 5-3/4 at $4.95-3/4.
What to Look For – Planting progress. The 200-day moving average for May corn was a support area on Tuesday.
Soybeans closed at their lowest in six sessions pressured by the reports of incoming soybeans from Brazil and soymeal from Argentina.
New-crop November also might have been pressured by the slow corn planting, because if that planting is delayed too much some of the intended fields could be switched to soybeans.
Traders remain wary of China, after Asian sources said last week that Chinese buyers may default on 1.2 million tonnes of U.S. and South American soybeans
The South American harvests are progressing. Dry weather was forecast this week for much of the region which should allow harvest to progress, CWG said.
In Chicago, May soybeans closed down 19 cents at $14.79-3/4 and November closed down 8-1/4 at $12.15-1/2.
What to Look For – Incoming shipments of South American soybeans and soymeal. Weather forecasts will determine how quickly corn planting can progress in the U.S. Midwest.
Winter wheat markets closed higher to recover some of what they lost on Monday. Despite recent beneficial rain the hard red winter wheat remains in dire shape making it hard to push futures too much lower.
Midday forecasts by Commodity Weather Group were mostly dry for the Plains this week and for the northern Plains next week with some rain likely in two weeks.
Wheat futures have come down from last week's three-week high. The condition ratings in Monday's weekly crop progress report were little changed from the prior week indicating the frost early last week may not have hurt the crop. However, annual crop tours will be starting soon with scouts looking for signs of freeze damage.
SRW May wheat closed up 4-3/4 cents at $6.73 and July finished up 4 at $6.79-1/2. HRW May wheat closed up 7-1/4 cents at $7.41-1/4 and July up 5 at $7.46-3/4.
What to Look For – Weather. Near-term forecasts favor dry conditions there this week.
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