The markets remain quiet this morning after yesterday’s selloff in all commodities. Yesterday’s selloff in corn and soybeans was a combination of following wheat prices lower, soybean loadings being short of the USDA’s forecast and funds reduction their long positions. Export inspections yesterday showed the US is averaging about 12 mbu per week in the last 20 weeks while the USDA’s forecast demands 26 mbu per week to achieve. Corn exports are running about 7.8 mmt behind a year ago and set to miss the USDA’s projections by 100 mbu.
Yesterday afternoons planting progress shoed corn at 3% planted vs. 6% last year and a five year average of 5%. Cool and wet weather should keep the number low on next week’s report which will start to garner more interest from traders. The 10-20 day forecasts are the focus of traders at the present time with temperatures expected to warm up. If we see this drier and warmer pattern get pushed out beyond the first of May, I would expect the markets to react.
Producers need to keep an eye on these weather reports and also need to realize that weather premiums may arise, but will be short lived.
Make sure you have firm offers in with your buyers for old and new crop corn.
Have a Safe Day!