The markets are trading both sides of even in corn and up slightly in soybeans. Yesterday was a bad day in the bean markets. The demand destruction from China is crippling this market. The word is that China will lose 40% of its pork production due to the swine flu. They will not need to buy very many beans this year and this year’s marketing season is just about over. Hopefully this demand destruction will be resolved for next year’s crop in the coming weeks. The Chinese trade delegation is coming to Washington next week and a deal is expected to be reached. Rumors are that a signing date will be scheduled with President Trump and President Xi for some time in May. (Fingers crossed)
Funds are still holding record short positions as they are currently short 300,000 corn and 166,000 soybean contracts.
The forecast for the next 10 days remains cooler and wetter with spotty chances for producers to get into the fields. We may need that 10 days of wet weather to get the markets to react as the recent delay has done nothing to spur a rally.
My caution for producers is to make sure you make sales on any rally we see due to weather. Every weather market is VERY SHORT lived regardless of how severe it may seem. I would advise making cash sales in the $3.45-3.50 range for May/June. I would target $3.60-3.70 for new crop sales. I would suggest making sales for next February/March in the $3.75-3.80 range.
Have a Safe Day!