NFC Afternoon Grain Comments

Acres report is behind us.

For the week, May corn finished up 17.5 cents and May soybeans added 77.5 cents. We got the USDA’s survey of prospective plantings. Corn acres came in at 92 million acres which was 1 million acres above estimates and soybean acres were 87.51 million acres which was 800 k lower than estimates. December corn finished slightly lower and November soybeans ended 16.25 cents higher. What does the price action tell us? First, the market does not expect the US to plant 92 million acres of corn. Second, the market does not expect the soybean acres to be as low as 87.51 million. The current situations in the Northern Plains and Southern plains with drastically different but very challenging moisture/weather conditions has the markets taking pause. This will be the driver going forward as not much early progress is being made in major growing areas of the Midwest. New crop contracts will likely need to build risk premium back into prices. NFC Grain Afternoon Comments. (5)