Friday's CME close: Corn steady, everything else sharply lower
CME: May corn settled 5 cents higher at $5.60 1/2, May soybeans settled 60 cents lower at $12.67 1/4, May soymeal closed $6.50 lower at $342.50, May soyoil ended down it's new 250 point limit at 54.98 cents/pound & May wheat was 25 cents lower at $9.89 per bushel.
All commodities closed sharply lower Friday with the exception of corn on ideas that the USDA planting estimate released before the opening Monday will show a huge reduction in acres.
Whilst it seems pretty much unanimously agreed that US farmers will plant less corn in 2008 and more beans, the exact magnitude of the switch remains unknown & opinions vary quite widely.
In 2007 US farmers planted a record 93.6m acres encouraged by ideas that ethanol demand would increase hugely and underpin the market. This time round that confidence isn't there and most forecasts are generally between 85.7 million and 89.8 million acres, putting the average at 87.387 million. Goldman Sachs forecast Friday that U.S. corn acreage will fall 10.2% 84.1 million acres, much lower than the average industry estimate.
There is some talk of traditionally early planted fields not being sown to corn as yet due to unfavourable conditions, whilst everyone acknowledges that it is still very early days.
There is also much talk of the higher input requirements of corn & the sky-high price of fertiliser, and some reluctance to plant corn-on-corn. There is also talk of the potential to double crop beans with wheat in some areas.
However dig a little deeper & you will still hear talk that for many corn is still a more profitable crop than beans. There is also talk of soybean seed being difficult if not impossible to find.
Check the blog Monday afternoon for the latest news & views once the figures are out.
All commodities closed sharply lower Friday with the exception of corn on ideas that the USDA planting estimate released before the opening Monday will show a huge reduction in acres.
Whilst it seems pretty much unanimously agreed that US farmers will plant less corn in 2008 and more beans, the exact magnitude of the switch remains unknown & opinions vary quite widely.
In 2007 US farmers planted a record 93.6m acres encouraged by ideas that ethanol demand would increase hugely and underpin the market. This time round that confidence isn't there and most forecasts are generally between 85.7 million and 89.8 million acres, putting the average at 87.387 million. Goldman Sachs forecast Friday that U.S. corn acreage will fall 10.2% 84.1 million acres, much lower than the average industry estimate.
There is some talk of traditionally early planted fields not being sown to corn as yet due to unfavourable conditions, whilst everyone acknowledges that it is still very early days.
There is also much talk of the higher input requirements of corn & the sky-high price of fertiliser, and some reluctance to plant corn-on-corn. There is also talk of the potential to double crop beans with wheat in some areas.
However dig a little deeper & you will still hear talk that for many corn is still a more profitable crop than beans. There is also talk of soybean seed being difficult if not impossible to find.
Check the blog Monday afternoon for the latest news & views once the figures are out.