Market Thoughts by Marc

Keep Up with the Markets

May 4, 2017

May corn 358 – 8 ¼            May soybeans 965 ¼- ¼         May Mpls wheat 535 – 13 ¼                  
July corn 366 ½ -8 ¼            July Soybeans 974 ¼ - 1       July Mpls wheat 547 ½ -13 ¾     
Dec 17 corn 384 ½ -7 ¾     Nov17 Soybeans 964 ¾ - 5 ¼        Sept 17 Mpls wheat 553 ½ -12 ¼ 

The Kansas Wheat tour completed another day and It looks like the snow storm did not do as much damage as was expected. They kept the yield estimate at 46 bu/acre which is not as good as last year but well above average. The true story will not be known until the combines get rollin’. Hummm – Wheat’s a “weed” – takes more than a little snow to kill it.

Even with the USDA export sales well above what the market was looking for, all the categories of wheat gave back almost all gains made 3-days ago.  In the case of Mpls wheat, substantially more than the recent gain.

The outlook for good planting weather in the upper Midwest was given credit for weakness in the corn market.

Crude oil traded down over $2/ barrel, which is usually not supportive for corn. 

The weakness in several markets may be linked to a rumor that Chinese banks could be cutting financing of “commodity pools.” Hummm -where will the kids swim? 

Don’t wait too long to take advantage of the narrow basis at the “river”. Higher water levels could start to restrict navigation. Hummm - you know what that will do to basis.