Grain Exchange – 4-21-2021
Fireworks! Markets continue to move up with weather concerns both in the US and South America. The main concern is dryness in Brazil. Brazil also removed import duties today until the end of the year to help livestock growers. Wheat started the day very strong and fizzled out as the day went on.
Mexico purchased old corn before the day trading session of 114,000 tons. New crop corn settled 15% higher than the crop insurance price in February. Also noteworthy is the first-time a nearby board closed above 6.00 since July 2013 board went off. Planting progress is right in line for our 5-year average at 8%. Rabobank drops Brazil total corn crop at 105 million metric tons down 2 million metric tons. Watch the markets next week as progress is expected in planting.
Wheat is the sleeper of the grains. Winter wheat is 10% headed vs 14% on the five-year average. The good to excellent remained the same at 53% which was the same as the previous week and down from last year at 57%.
Beans are 3% planted vs 2% on the five-year average. China issued guidelines about cutting corn, soymeal in pig and poultry feed. China is looking to replace with small grains and use is expected to be reduced by 15% in Northeast China.
Make sure to be looking at your sales, put smaller offers in and sell on the way up. This is an exciting time to be in agriculture! Look to the future, there is profit there for you. Keep working offers!