Grain Comments 05/10/21 8:05:42 AM|
May 10, 2021
Morning Comments :
Good morning. Grain and soybean markets were overnight lower for the first time in what seems like weeks. Better than expected weekend rains that fell on a large swath of Iowa and northern Illinois have at least temporarily reduced drought concerns. Dalian corn and soybean futures were higher today; Malaysian palm oil was lower. The Dollar is weaker to start the week; crude oil is higher. Much of the eastern half of Iowa and northern Illinois received at least an inch of rain over the weekend and the western corn belt and northern Plains regions are expected to see normal to above normal rainfall next week. Temperatures across the corn belt will remain well below normal this week but will warm back to seasonal levels next week. Safrinha corn prospects will continue to decline this week as rainfall remains well below normal. The big story this week will be Wednesday’s WASDE report when the USDA will give its first estimates of the 2021/22 balance sheets. Average trade guesses for 2020/21 ending stocks include 1.275 billion bu. of corn and 118 million bu. of soybeans. 2021/22 ending stocks are expected to come in at near 1.327 billion bu. corn and 133 million bu. of soybeans. This afternoon’s crop conditions report is expected to show U.S. corn planting near 75% complete with beans about 45% planted. Although we’ve seen some profit taking overnight, soybeans have rebounded in the past thirty minutes with old crop months now slightly higher. We’re overdue for a profit taking session that would take prices lower, but fundamentals look bullish and the entire growing season is ahead of us. The tone is slightly bearish to start the day, but recent set backs have been quickly bought. We’ll see if that’s the case today. Have a good Monday.