April 23, 2014
Morning Price Trends
Corn: Narrowly mixed
Soybeans: Down 1 to 7 old crop; up 1 new crop
Wheat: Down 3 to 6
Note: Farm Futures Senior Editor Bob Burdorfer will be filling in for Bryce Knorr this week.
Soybean futures fell to a one-week low in overnight trading on Wednesday as imports from South America could ease the tight supply situation in the United States.
Corn futures were narrowly mixed as forecasts for dry periods in the United States should allow farmers to catch up on spring planting, which has lagged the average pace.
Wheat futures were lower pressured by forecasts for rain in some of the dry U.S. Plains and by beneficial rain in Australian wheat areas.
Soybeans have been pressured this week by reports of Brazilian soybeans and Argentina soymeal will be imported to the United States.
A Reuters report on Tuesday said two shipments, about 125,000 tonnes total, of Brazilian soybeans were switched from China to the United States. Also, a cargo of soymeal was scheduled for loading in Argentina for shipment to the United States.
Imports of South American soybeans have been expected as the harvest there is under way and supplies of U.S. soybeans are expected to be very tight this summer.
Palm oil was lower in Malaysia overnight amid good weather in Southeast Asia and European rapeseed was lower.
What to Look For – News on imports. Soybean planting should start this week, with USDA set to add soybean planting progress to next week's crop progress reports.
Corn was trading near unchanged in old-crop months early on Wednesday, while new-crop December was slightly higher.
Periods of dry weather in the U.S. Midwest should allow planting to advance. Planting was 6% completed as of Sunday, behind the 14% average pace. While there is still plenty of time to plant, particularly with today's big machines, the market's attention to fieldwork increases as days go by.
Forecasts early on Wednesday call for wet conditions in the Midwest early next week, but mostly dry after that and into the following week. Also, some forecast models have lessened the severity of cold weather next week.
What to Look For – Clear skies that will aid planting. Farmer reports on planting progress
Winter wheat traded lower as rain fell in parts of Kansas and Oklahoma recently, but additional rain appears to be scarce.
Winter wheat's condition stabilized in the latest crop progress reports, with 5% rated excellent, 29% good, 33% fair, 20% poor and 13% very poor. A week ago, the percentages were 4%, 30%, 34%, 20%, and 12%, respectively.
Rain in Australia should allow for rapid planting when that fieldwork starts next week. However, Australian growers remain concerned about drought later in the growing season should an El Nino develop.
What to Look For - Rain in the Plains. Commodity Weather Group said recent rains tracked too far north to help wheat in Southwest Plains. Crop tours start late next week and will assess winter wheat's condition.
Want to receive market commentary by e-mail twice each day? This service includes added information, charts and graphs to explain market trends, and more. Sign up for the FREE service today - just click HERE
This information is not to be construed as an offer to sell or a solicitation or an offer to buy the commodities herein named. The factual information of this report has been obtained from sources believed to be reliable, but is not necessarily all-inclusive and is not guaranteed as to the accuracy, and is not to be construed as representation. The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results.