Grain Exchange – 4/7/2020
Markets have started in a traditional turn-around Tuesday fashion. Global markets are seeing some positivity as the world hopes the spread of the coronavirus is being contained.
Corn and beans both up slightly to start the day. Corn planting has started in some of the most Southern US states including Texas at 57% planted and Louisiana at 87% planted. Planting in Mississippi and Arkansas is behind average. The industry is anxiously trying to predict the switches in acres from corn and cotton to soybeans across the country with recent price action. The USDA will release a national corn planting number on April 13th.
Corn has been feeling the pressure as the crude market has been tough to watch. This continues to put pressure on the ethanol industry, causing bearish trends to move over to the corn markets. Ethanol margins are still in the red, encouraging plants to slow production until demand picks up. However, Energy stocks are a bit higher today as there have been some reports that Saudi Arabia and Russia may be approaching an output deal. Plans for talks are set Thursday.
Both soybeans and soy oil are higher through the overnight trade. Argentina has started their bean harvest, and it looks like they should have a good window to get some work done as the 7-10 forecast looks dry. China seems to be sourcing beans from Brazil as they are 25-30 cents cheaper than US numbers.
Wheat prices were down in the overnight trade. Yesterday the USDA said that winter wheat ratings were better than expected with 62% of the crop being rated at Good/Excellent. This was higher than expected and higher than this time last year.
US farmer sales are slowing down as we see low prices, and they’re switching gears to spring fieldwork. Make sure to keep an eye on your marketing plan and update target prices before you get too busy in the fields! We’re here to help!
Have a great day!