We got some surprising numbers yesterday in the acreage numbers. Corn acres came in at 96.9 million acres, soybeans at 83.5 and all wheat at 44.6. Corn acres are almost 3 million over USDA estimates from January while soybeans came in 1.5 million under. These combined acres were the most since 2012 and these numbers will call for a lot of corn on corn acres. Corn did have some good news on the stocks numbers coming in 150 million bushels less than estimate. Feeding numbers were most likely strong and there is still the feeling that the 2019 crop has been overstated and that is starting to show in the numbers. The ethanol debacle had not hit the news before this survey was taken and that may change some intentions going forward and the weather can always make farmers change some things.
Today’s Corn Outlook: Corn settled a half cent higher yesterday buy has dropped 3 cents overnight. Monster acres have to put another headwind on the corn market. It was somewhat surprising corn recovered to almost unchanged yesterday. Most find it hard to believe those acres will be planted and there is going to be a resurvey in April.
May Corn Technicals: The corn market is bearish territory and continues to blow thru technical support. A close under 3.35 ½ will open up 3.18 on the downside. Bulls need to see a close over 3.55.
Today’s Soybean Outlook: Beans finished 3.75 cents higher yesterday but have fallen off losing 12 cents overnight. Soybeans are disappointing as they continue to get better news as the balance sheet continues to shrink and South America is having issues dealing with the virus outbreak. You would think soybeans will find support on breaks.
May Soybean Technicals: The soybeans are short term bullish and a close above 8.90 will open up a challenge of 9.00 and 9.10. Bears need a close under 8.61. Exports: none to report.
Weather: Midwest near to above average rains will limit progress. One third of Brazil 2nd corn crop area is dry. Argy is in good shape but will get dry in the 6-12 day.
Dollar Index: The dollar is trading 69 ticks higher this morning at 99.78. Brazilian Real: The Real is trading 19.5 ticks lower this morning at 19.04.
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