Old crop corn is up 1 while new crop corn is down 3 to start the day. Favorable weekend planting and a nice forecast are keeping pressure on the new crop markets. This afternoon planting progress should be a little better than 50% completed in corn and 35-40% in soybeans. Winter wheat is expected to be 1-2 percent better in the ratings.
We will have the May WASDE report released on Friday which will include the USDA’s first official 2023/24, new crop, balance sheet estimates. Typically, this report does not hold too much of a surprise as the demand ideas for the coming year were laid out as part of the February Ag Outlook Forum numbers. The supply side assumptions are mostly in place, as well, as they are likely to use the March Prospective Plantings report acreage estimates and the yield assumptions released in February. For old crop, the focus remains squarely on the demand side of the balance sheet, which has not been all that supportive with the recent Chinese cancellations of U.S. corn purchases and ethanol production continuing to run at overall disappointing levels.
Producers should be actively locking in old crop basis levels as they are very attractive and may start to fall off if demand continues to disappoint. New crop sales should be made to get approximately 40% or more of your fall bushels moved.
Have a Safe Day!