Grain News: April 18, 2019 – Corn Continues To Grind Lower
Extreme spring weather is not shaking up the market in a positive way. With rainfall coming in less than first expected, the market looks for planting to get a good start. Fieldwork around here has not really started, but south of here has and fertilizer applied.
Markets are taking a break on Good Friday holiday and trading will resume Sunday night. High level talks are scheduled for last week of April in China and then Washington DC in early May. There is still hope that a deal will be reached and signed by the end of May or early June.
Corn continues to grind lower with lack of news and farmer selling. Ethanol production saw an increase over last week by 295 million gallons. Ethanol is currently outpacing seasonal averages and USDA estimates. Ethanol stocks are still 6.2% above levels at this same time last year. February the U.S. exported 114 million gallons below last year by 48%. The normal buyers are still buying Brazil, Canada and India. U.S. corn is still 30-35 cents over priced against Brazilian corn.
Funds continue to take a shorter position in beans. Argentina’s government estimated their soybean crop at just shy of 56 million metric tons vs. the USDA at 55 million metric tons. China is thought to have most of their beans bought for May but only 30% for June.
Start looking at corn numbers for October/November 2020. Spring 2021 offers some good numbers out there. Make sure to talk to one of us and review your offers ahead of planting. Have a safe and great planting season.