Grain Exchange – 5-12-2021
This week has been full of interesting news. Acreage, Brazil Conab (similar to USDA reporting), and WADSE reports have the markets moving in all directions.
Let’s start with the Acreage weekly report from Monday afternoon. US corn was 67% planted and 20% emerged. Wisconsin’s corn was 49% planted and 5% emerged. Both US and Wisconsin’s corn progress is ahead of the 5-year average. Beans were 42% planted in the US and 34% planted in Wisconsin most of which are still hiding in the soil. The progress as expected is also ahead of schedule.
Brazil’s Conab was released yesterday indicating there is more MMTs of corn than anticipated about 106mmt up from 99-100mmt. However, the weather is still very dry for the next 10 days so that will be impacting the 2nd crop corn.
On to the WADSE Report that came out at 11am today. US ending stocks chart is below. Notable observations, carryout is tighter than it has been in the past. When looking at the chart below it is good to remember that Chinese Government is predicting over a 4% increase on corn usage for the 2021-22 crop. World production was focused on South America, all numbers were exactly as predicted or better.
Although this is a lot of information to digest, the focus should be on the profit that the cash bids are presenting. There are a lot of moving parts driving the markets, almost all of which have unpredictable next moves. Instead of trying to outsmart the market, continue to lock in these great profits as far out as 2022. Continue to place offers and stay in contact with your Grain Marketing Specialist.