CORN
- Corn is trading higher at midday after yesterday’s lower close, with stronger overnight energy prices providing support. May corn is up 5.6 cents at 4.57 ¼.
- Cordonnier reduced his Argentina crop estimate by 1 million tons while increasing his Brazil estimate by a similar amount.
- Farmers in Mexico have been protesting the government’s lack of action on low corn prices. The Mexican president yesterday proposed prioritizing private sector purchases of domestically produced corn over imports. Because Mexico is a major buyer of U.S. corn, the measure could affect U.S. exports if implemented.
- Ethanol production rose to 331 million gallons in the week ended March 6, up from 322 million the prior week and 6% above year-ago levels, coming in at the high end of expectations.
SOYBEANS
- Soybeans are higher at midday following yesterday’s USDA report, which offered no major surprises for the soybean sector. Soybeans and soybean oil are higher, while soybean meal is lower at midday. May soybeans are up 19.6 cents at 12.22.
- Dr. Cordonnier left his Brazil crop estimate unchanged and reduced his Argentina estimate by 500,000 tons to 48 million, in line with the USDA.
- A fire at Cargill’s soy processing facility in Wichita, Kansas, was reported late Monday. The plant will remain offline until damage can be assessed and repairs completed. The facility primarily serves domestic markets rather than exports.
WHEAT
- Wheat is higher at midday, supported by stronger overnight energy prices. May Chicago wheat is up 4.2 cents at 5.95 ¼, while May Kansas City wheat is up 7 cents at 6.15 ¾.
- Beneficial rains were reported across southeastern areas of the southern Plains over the last 24 hours, but precipitation is expected to be sparse over the next two weeks as a below-normal moisture pattern develops across the Plains.
- Safras pegged Brazilian production at 6.85 million tons, down 14.5% from last year as planted area declined 15%.
- India’s wheat output is projected to hit a record 120.2 million tons, up from 118 million tons last season.
Author
Lauren VandenLangenberg