Grain Comments 04/18/24 8:04:49 AM
April 18, 2024
Morning Comments:
Good morning. Corn and soybeans are sagging lower this morning, pressured by additional rain that fell overnight on northern Missouri, Iowa, and southern Minnesota, a region that had been dry, but is now seeing soil moisture levels improving following recent rains. This current system will dump .50 to 1.50” of rain across this region and much of the eastern Midwest later today and tonight. Weather forecasts still indicate a cool and dry period shaping up for the Midwest tomorrow into early next week. The 8 – 14 day outlook calls for above normal temperatures and rainfall for all of the corn belt. The outlook is favorable for planting and early season crop development. Wheat is trading modestly higher this morning after the nearby contracts suffered double digit losses yesterday. Yesterday’s losses were attributed to forecasts that indicated better rain chances for much of the southern Plains, but updated forecasts have removed some of the rain totals for the region over the next ten days. The HRW wheat crop in the southern Plains needs rain. Better rain chances for the central U.S. are indicated in the 11 – 15 day period. Energy markets are mostly lower to begin the day, including crude oil. The May WTI crude contract is down 23 cents at 82.46. It is down $3/barrel in trading this week. The Dollar Index is 0.046 higher at 105.810. The Phillipps 66 Rodeo California refinery is now operating and is producing 27,000 barrels of renewable diesel/day as of April 15th. The plant is expected to reach its operating capacity of 50,000 barrel/day later this quarter. At capacity, the plant will add 15% to U.S. biofuel production. There’s more talk that corn stunt disease will lead to significant losses in Argentine corn production this year. Some early harvested corn in northern Argentina has reportedly experienced yield losses of 40 to 50%. Corn, soybean, and wheat futures are all trading not far above contract lows. If Midwest weather forecasts into early May verify, all three commodities may test those lows. Today looks like a lower day for corn and soybeans. Have a good Thursday.
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