CBOT Closing Comments
Corn
May corn closed at $3.94 ¼, up 6 ¾ cents as the USDA confirmed that just 2% of the crop has been planted so far. April weather has so far been cold and wet across much of the Midwest, giving rise to ideas that corn acres will ultimately be reduced from last week's suggestions from the USDA. Gains were capped as crude oil fell after a report showed that retail sales in the U.S unexpectedly declined in March.
Soybeans
May soybeans closed at 2 ½ month highs of $10.36, up 14 ½ cents. Old crop strength remains, buoyed by the continues presence of China in the market for US beans, coupled with tight 2008/09 ending stocks. It seems pretty clear that current projections from the USDA of 165 million bushels carryout are too high given China's current appetite for US beans. Meanwhile, reports from Argentina appear to indicate that their crop currently being harvested may come in under the 40 million tonne mark.
Wheat
May CBOT wheat at $5.22 ¼, down 1 cent. Damage from last week's freeze is still being assessed but early indications are that Oklahoma and Texas came off worst, with Kansas escaping relatively unscathed thanks to the fact that crops there were behind in terms of development compared to these other states. Freeze damage has been rated at 51% with no damage, 35% with light damage, 11% with moderate damage and 3% severe freeze damage in Kansas. In Oklahoma moderate to severe freeze damage may be more like 30-40% sources say.
May corn closed at $3.94 ¼, up 6 ¾ cents as the USDA confirmed that just 2% of the crop has been planted so far. April weather has so far been cold and wet across much of the Midwest, giving rise to ideas that corn acres will ultimately be reduced from last week's suggestions from the USDA. Gains were capped as crude oil fell after a report showed that retail sales in the U.S unexpectedly declined in March.
Soybeans
May soybeans closed at 2 ½ month highs of $10.36, up 14 ½ cents. Old crop strength remains, buoyed by the continues presence of China in the market for US beans, coupled with tight 2008/09 ending stocks. It seems pretty clear that current projections from the USDA of 165 million bushels carryout are too high given China's current appetite for US beans. Meanwhile, reports from Argentina appear to indicate that their crop currently being harvested may come in under the 40 million tonne mark.
Wheat
May CBOT wheat at $5.22 ¼, down 1 cent. Damage from last week's freeze is still being assessed but early indications are that Oklahoma and Texas came off worst, with Kansas escaping relatively unscathed thanks to the fact that crops there were behind in terms of development compared to these other states. Freeze damage has been rated at 51% with no damage, 35% with light damage, 11% with moderate damage and 3% severe freeze damage in Kansas. In Oklahoma moderate to severe freeze damage may be more like 30-40% sources say.
