Corn down, despite early planting delays
Soybeans were mixed, adjusting old crop/new crop spreads. Contracts made new highs recently, but were reluctant to push too much higher coming back from Easter weekend, given the increasing world supply. Conditions in Brazil generally look good with South America on track for record production and U.S producers are expected to plant a record amount of soybeans. AgRural says 87% of Brazil’s bean crop is harvested. Soybean meal was lower and bean oil was higher, unwinding product spreads. The NOPA says member firms crushed 153.060 million bushels of soybeans in March, up from February, but down from March 2016. According to wire reports, Canada’s canola acreage this year is expected to be the second largest ever for that nation. The report is out Friday.
Corn was lower on commercial and technical selling. Recent rainfall has delayed planting in some areas, but it’s too early to get too concerned and that rain will likely help with development during the season. According to the USDA, as of Sunday, 6% of U.S. corn is planted, compared to 9% on average. Corn’s also watching conditions in South America, expecting record production. According to AgRural, 76% of Brazil’s corn crop is harvested. Ethanol futures were lower. Wire reports have China’s corn production falling to a six year low.
The wheat complex was lower on commercial and technical selling. Chicago and Kansas City led the way down after the recent rain in winter wheat growing areas. The USDA says 54% of winter wheat is in good to excellent shape, up 1% on the week, and 19% has headed, compared to the five year average of 13%. 13% of spring wheat is planted, compared to 21% typically this time of year. Ahead of Friday’s Statistics Canada report, analysts expect wheat acreage to be a six year low at 22.4 million acres.
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