Grains are higher at midday:
Corn +5 cent/bu (May @ 5.54)
Soybeans + 15 cents/bu (May @ 14.32 ½ )
Chi Wheat +13 1/4 cents/bu (May @ 6.40 ½ )
Cdn $ -0.00310 (79.645 cents)
WTI Crude Oil -2.66/barrel (58.90)
Minimal grain headlines so far today. Traders are already looking forward to the March 31st USDA reports, and the closer we get to spring, the more reliant the markets become on weather.
Wheat in the U.S. is continuing to improve with many states increasing their good-to-excellent percentages. Kansas was at 45% (38% last week), Oklahoma 62% (57%), Texas 29% (27%), Colorado 33% (25%), and Arkansas 57% (53%). They say rain makes grain, and improved potential yields are definitely developing in the USA. (bearish wheat)
As private analysts start to release their planting intentions ahead of next week’s USDA report, traders are becoming aware that the U.S. may need to plant more soybean acres. ProFarmer tagged estimates for corn acreage at 93.4 million, and soybean at 88.9 million. Markit (formerly Informa) was projecting acres for corn at 94.3 million, and soybean acres at 89.7 million. Soybean acerage of less that 90 million, even with good yields, will still not bring soybean carryouts back to comfortable levels. Soybean futures will have to rally a fair amount to draw acres back from corn. It will be interesting to see what the USDA pegs these acre intentions at on the 31st. (bullish soybeans and corn) ß This seems to be the story that most of the trade is fixated on this morning.
Brazil weather is starting to improve, providing a window for their soybean harvest to continue. It is estimated that the country is now 60% complete, and the ports are jam packed with freighters lining up to load up and ship to China. (bearish soybeans)