Our markets are starting off the week trading sideways/mixed after last week’s massive selloff. The big drop in futures last week can’t really be pinned down to one “story”, but there were a few odds and ends that simply weren’t bullish – such as improving rainfall and overall weather outlook in the US, whispers of Chinese cancellations, and thoughts of a big jump in US acres. With nothing else for fresh news to go off of, these combined stories can make one question their long position pretty quick.
On the planted acres piece -- there was a private forecast out on Friday pegged US corn acres 5-6 million higher than the previous USDA forecast! When you hear talk of 96 to 97 million acres of corn, that makes you sit up straight and pay attention. With good weather and strong acres like that, next year’s corn S&D doesn’t seem quite so daunting.
Of course with corn acres jumping – what happens to soybeans acres?? How does price react? Good questions. Get used to the debate (and subsequent volatility) – we won’t see final planted acreage numbers from the USDA until June 30th.
Corn is mixed, trading 2c lower to 2c higher
Soybeans are steady to a nickel higher