April 15, 2014
Morning Price Trends
Corn: Down 2 to 3 1/2
Soybeans: Old crop up 4 to 8; new crop down 1
Wheat: Down 2 to 4
Note: Farm Futures Senior Editor Bob Burdorfer will be filling in for Bryce Knorr this week.
Grain markets were mixed in light overnight trading, with corn lower on Tuesday morning after Monday's gains as planting delays in the Midwest did not appear to be a major concern this early in the season.
Soybeans were higher for a second day in light trading, but prices remained within recent trading ranges.
Chicago soft red winter wheat was slightly lower and Kansas City hard red winter was lower, giving up some of Monday's gains when forecasters warned of frost in the Plains wheat areas.
Tensions between Russia and Ukraine continue to be watched. Ukraine's threat to crack down on pro-Russian separatists has been slow to develop.
Corn prices slipped as farmers are expected to quickly make up for the slow start to spring planting. USDA on Monday reported 3% percent of the corn was planted, ahead of last year's 2% but behind the 6% five-year average.
Forecasts call for normal to below-normal precipitation in the Midwest this week and for much of the Midwest in the 6- to 10-day outlook. Modern machinery can make rapid planting progress in just a few days.
What to look for: Long-term forecasts for the Midwest as fields need to warm up so that planting can progress. The 6- to 10-day outlook calls for normal to above-normal temperatures in the Midwest.
Soybeans were higher overnight for a second day of gains as the market continued to recover from last week's news that credit issues would cause Chinese buyers to default on up to 500,000 tonnes of U.S. and Brazilian soybeans.
Stock markets were expected higher following Tuesday morning earrnings from Coca Cola and Johnson and Johnson.
In overseas markets, palm oil was higher in Malaysia on strong exports, while rapeseed rose in Europe.
What to look for: Advances in Argentina and Brazil soy harvests as forecasts call for clear weather into next week.
Winter wheat was lower as rain was forecast for parts of the central and southern Plains.
Frost likely hit parts of the Plains wheat areas overnight and this morning causing "scattered pockets of damage," Commodity Weather Group said.
Wheat can recover from frost this early in the growing season, so it may take time to assess the impact on yields.
The wheat already is in poor condition after a dry winter and early spring. Late on Monday, USDA rated winter wheat 34% good to excellent, 34% fair, 20% poor and 12% very poor. In Kansas, the largest wheat producer, the crop was 1% excellent, 25% good, 44% fair, 20% poor and 10% very poor, while more than half of Texas and Oklahoma wheat was rated poor to very poor.
Japan is seeking to buy 136,261 tonnes of U.S. and Canadian wheat for Sept. 30 arrival.
What to Look For: Rain. The winter wheat crop in the central and southern Plains needs rain. The latest 6- to 10-day forecast from Commodity Weather Group puts rain in the central and southern Plains.
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