Last night’s planting progress showed US corn at 27% complete vs. 7% a week ago and 20% on the five year average. The major corn growing states all came in well above average and are as follows:
Iowa 39% complete 20% average
Illinois 37% complete 31% average
Nebraska 20% complete 16% average
Minnesota 40% complete 19% average
Indiana 18% complete 11% average
Wisconsin came in at 11% complete vs. a five year average for this week of 5%.
Soybean progress was reported at 8% complete compared to 4% on the five year average.
Yesterday’s selloff in corn was tied to planting progress and crude oil. Crude oil values fell $4/barrel to less than $13/barrel. Ethanol demand has been crippled by the drop in crude oil and the decrease in travel by consumers. Several states are revealing their plans to reopen while others are clamping down for another 30 days. Worldwide infections are at 2.98 million. World deaths are now over 206,000. The US’s confirmed number of cases is 966,000 with 48,000 deaths.
Producers need to be moving old crop corn and making new crop sales! Demand destruction in the ethanol industry is not going to come back until consumers get back on the roads. With low crude prices and stocks of ethanol and crude at all-time highs I do not expect to see demand back for another 12+ months. Cash prices for fall corn are currently hovering around $2.90-3.00/bu. Barring any growing issues this spring/summer, these prices will be much better than what we see this fall. My advice is to be pro-active in marketing this year.
Have a Safe Day!