Grain Exchange – 3-30-2021

Grain exchange update with Judy Uhlenhake

USDA will release their Prospective Plantings and Quarterly Grain Stocks report at 11:00 a.m. tomorrow.  Markets are trading lower as the funds position themselves ahead of the report. Corn and soybean prices are pushing lower as traders look at Brazilian crop potential and the historically large acres for the United States. Weekly corn export inspection showed 66.7 million bushels, down from 79.4 the prior week. Estimates for US corn quarterly stocks average 7,745 million bushels compared to 7,952 million bushels in 2020. Average expectations for the Prospective Plantings report corn acreage are 93.2 million acres compared to 90.82 in 2020.

Soybeans are trading lower on favorable forecasts for planting weather in the US corn belt. Soybean export inspections are in their seasonal decline, 15.64 million bushels, 14.2% down from prior week but 2.7% higher than same week a year ago. Funds are adjusting their positions ahead of the USDA’s report.  This report has the potential to bring strong volatility to the market. Average trade estimate for planted acres is 90 million versus 83.08 million acres in 2020. Average stocks estimate is 1,543 million bushels compared to 2,255 million bushels in 2020.

US wheat condition ratings improved in Kansas, but were lower in Oklahoma, Texas and Colorado.  Despite the downturn in weekly crop conditions, wheat is trading lower on prospects of high global supplies and rising dollar.

The deadline to sign up for our average price contract is Wednesday, March 31 (tomorrow).  We will average the closing harvest price between 4-1-21 and 7-16-21.

Customer Advantages:

  • It helps diversify your marketing plan.
  • It takes the emotion and hassle out of your marketing decision by automatically executing for you.
  • Receive an average price in a window when historical seasonal values are typically at the highest.
  • Look for volatility in the markets during the planting season.
  • Get you open offers in to take advantage of rallies when your busy getting the crop in the ground.

Your Grain Marketing Specialist is here for you to help execute your marketing plan.

Have a Blessed Easter.

Judy Uhlenhake