May 17, 2019 Comments per MIDCO
Good morning. Grains are continuing to rally this morning with corn now above the 100-day moving average (CN $3.80). Soybeans are a bit lower as the wet weather pattern may push some acreage back to soybeans. Additional aid payments to farmer will likely be heavily weighted to soybeans and some are suggesting that soybean acreage may end a little higher than earlier thought as some producers plant a few more bean acres to take advantage of the anticipated payments. Monday’s crop progress report is expected to show about 50% of the U.S. corn crop planted compared to about 75% average. Rains overnight and this morning dumped moderate rainfall on much of Iowa and the weekend still looks wet for all the Midwest. Fieldwork is just getting restarted in the eastern Midwest , but it looks like it will be shut down again after just one or two days of activity. Talk of increases in prevent plant acres is adding support to corn. Funds yesterday covered more of their net short grain and soybean positions and are now thought to be short 226,000 corn, 155,000 soybean, and 68,000 Chicago wheat contracts. More fund short covering of corn and wheat looks likely today which should support those markets while soybeans struggle. Have a good Friday and great weekend!