Grains are mixed to close:
Corn +6 cents/bu (May @ 5.552 1/2)
Soybeans – 13 3/4 cents/bu (May @ 14.00 1/2)
Chi Wheat + 3/4 cents/bu (May @ 6.13 1/4)
Cdn $ +0.00135 (79.415 cents)
WTI Crude Oil +2.41/barrel (60.97)
Happy Friday everybody! Wanstead Co-op has some exciting news to share on Monday, so make sure to check our social media platforms or our marketing commentary to catch the big announcement!
Trade estimates for next week’s planting intentions report has been released. The trade sees U.S. corn plantings at 93.2 million acres, up 2.6% from 2020 and up 1.3% from USDA's Ag Outlook. Soybeans are seen at 90 million, up 8.3% from 2020 but nearly identical to the outlook number. Wheat would be up 1.4% from 2020.
Estimates for the quarterly stocks report were also shared this week, courtesy of StoneX. These estimates would place corn and wheat at 6-year lows, while soybeans would reach 5-year lows.
Most of the trade seems to be getting into position for two reports to be released on the 31st, resulting in movement in the markets as contracts are bought and sold. We are expecting to see a fair amount of volatility on the 31st, whether it is positive or negative is the real question.
December corn futures have fallen 20 cents since March 8th, does that mean we reached the commodity peak? It might be wise to take a look at your marketing plan before this large report, to see if your situation may benefit from taking some risk off the table. If you want to talk to Floyd or Megan about your marketing plans, please feel free to give us a call next week as we are back in the office from 8-5.
The Ever Given ship in the Suez Canal is still stuck. Timelines to move the boat are unknown, and alternative routes for blocked ships would require more fuel, increased travel time, and potentially higher cost of goods. Thankfully minimal grain ships are affected, so that should not alter grain prices drastically.
Safras and Mercado (Brazilian Consultancy) has revised their soybean crop up to 134.09 million mt, from 133.1 million in June due to better than expected yields. It is reported that Brazil's soybean harvest is 69% complete, with safrinha Corn planting at 95% complete.
Soybeans were under pressure today as the soyoil markets dropped drastically. Like we said earlier in the week, oil lead rallies do not typically last long.
The funds position was released today for Tuesday. On that day, funds were longer than expected. Corn was 27,000 contracts longer than expected at 379,000, soybeans were 5,000 contracts longer than expected at 151,000, and wheat was 600 contracts longer at 2,700. Funds today were thought to be mixed with corn expected to have bought 12,000 contracts (long 352,000), soybeans were expected to have sold 22,500 contracts (long 115,000), and wheat is expected to have bought 5,000 contracts (short 8,000).