Grain News: May 7, 2019 – Delayed Planting May Be a Rally in Corn
Same news. Different week. Trump tweets, but still no deal with China. Rain is affecting planting. And corn, beans, and wheat are trading lower than last week. Hopefully things might be turning around soon.
Sources say that the Chinese will still be coming to the U.S. to meet regarding the tariffs despite Trump’s “offensive” tweet. The Chinese do continue to preach that they will not be pressured into a deal. It sounds like we should know by the end of the week if the deal is finally happening. If a deal is in place, I would not bank on $9.00 beans. Considering it is May and there is still plenty of old crop left, the market does not need to rally. With the way the market has been reacting to any information concerning the “trade deal” offers above the current market have the potential to hit.
Looking at the planting progress report yesterday the rain has prevented many farmers across the corn belt from planting. As the cart below shows, most states are significantly behind average acres planted. Delayed planting may be a rally in corn. There is also nice weather in the future, it does not take long to get corn planted once the weather cooperates.
Wheat in the West is said to be making great progress thus far. That continues to reflect in the SRW price as it goes lower and lower. However, in Wisconsin many farmers have tilled their wheat due to lack of progress.
With markets fluctuating drastically it is important to remember to have reasonable open offer out at multiple levels. Call your local Grain Marketing Specialist if you need to set up a marketing plan, it’s never too late!