Grain markets opened higher this morning with corn currently up 4, soybeans up 14 and wheat up 5.
As for the USDA crop report on Friday the bean and corn stocks both came in bullish. The smaller stocks were likely due to smaller crops instead of increased demand. The acres report brought back about 6 million acres of production into the planting figure. Corn acres were almost 92 million, beans at 87.5 million and all wheat at 49.855 million. Soybeans are the same as last year, while wheat and corn acres are up. We have struggled with preventative plant the last few years, and these are the missing acres that want to come back to corn and wheat. None of this is surprising and most anyone would have guessed as much. Now it’s a question of whether these acres can get planted. The Delta has been wet and the North has been cold and snowy. For what it’s worth these acres forecast would have a new crop carryout of about 1,800 million bushels in corn, 200 million in beans and 575 million in wheat.
OPEC announced that they will cut oil production back by 1.16 million barrels a day. This is the largest price movement in a year in crude oil and the cut was not expected. Biden is obviously not happy about the change as the US has released the vast majority of the strategic reserve. Petroleum reserves are the lowest since the 80’s and add up to only 19 days of use.
Reminder there will be no markets on Friday April 7th.
Have a Safe Day!