Good Morning!
We have had around 2 inches on the corn we planted last week, but temps are in the 80s-and with no beating rain just yet, I’m assuming we’ll get that corn up before the ground gets hard. The corn we planted three weeks ago ahead of the big Monday rain finally came up. To be honest, I’ve been shocked with how good our stands look, even after a three-inch rain. I know many of you have reported similar stories, while there’s been a chunk of replant as well. The start to the spring hasn’t been ideal in as many places as what we saw a year ago, but that’s what makes farming interesting. Every year is different. We’re just under 20 inches of rain for the year so far-given we came into spring 16 inches behind, it’s safe to say we’ve caught up. I appreciate the feedback from you guys-it sure helps us to get our heads wrapped around what’s really going on around the corn-belt. For more on AgMarket, click here. https://hubs.li/Q03qt2Qd0
The corn and bean markets came out of the gate on Sunday night like a rocket. With a poor finish to last week’s trade attributed to the thought Presidents Trump and Xi’s meeting didn’t produce positive results, the fact sheet released on Sunday night told a different story. With China reportedly agreeing to purchase $17 billion worth of agricultural goods outside of soybean purchases, the trade was in buy mode. That quieted down on a muted trade Tuesday. Outside markets should have provided a mixed bias:
Corn – The corn market surged on Monday, while dying down on Tuesday’s trade. July corn closed down 1 ¾ at $4.75 ¼. This was 6 ½ off the high and 3 ¼ off the low. Corn export inspections were below expectations at 1.379 mmt. This is also below a week ago but still a strong number. 76% of the crop is planted, which compares to 76% last year and 70% for the 5-year average. 39% of the crop is emerged vs 37% on average. As I talked about last weekend, we needed corn to find support after a poor finish last week. Man, did it ever find some footing. With a 20-cent higher move on Monday, we wiped out the losses to close last week. Whether we’re talking old or new-crop, we must realize this market has continued to afford us second and third chances. Getting some corn sold while keeping flex just in case we see China start buying or an acreage drop would seem wise. Dec26 corn settled down ¼ at $4.97 ¾.
Soybeans – Soybeans also rallied on Monday following the US/China news before quieting down on Tuesday. July beans were down 3 ½ at $12.09 ½. This was 8 ¾ off the high and 1 ½ off the low. July soybean meal was down 2.2 at 332.3, while soy oil was lower, settling down .19 at 75.44. Weekly inspections showed bean shipments at 483k mt, which was below expectations a week ago levels. Bean planting jumped from 49% to 67% planted, which compares to 53% on average. With 32% of the beans emerged, it compares to 23% on average. July beans surged 36 cents on Monday, moving back within 31 cents of the old high at one point. While the meeting in China didn’t mention more beans being sold, the market perceived the meeting as bullish ag-and the bean market was all about participating. I remain in the camp we reward bean rallies on increments while keeping some flex. While I’m not outright bullish, I could see beans moving quite a bit higher-especially if we see additional rallies for corn and wheat. Nov beans settled at $12.03, up 2.
Matt Bennett
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