TFM Morning Update 03-27-2024

The CME and Total Farm Marketing Offices will be Closed Friday, March 29, 2024, in Observance of Good Friday

CORN

Corn is trading lower again today after reports were released yesterday that avian flu was detected in dairy cattle in Texas, Kansas, and New Mexico. Cattle futures fell sharply and concerns regarding corn demand arose.
There has been significant rainfall this week in the eastern Corn Belt which has improved soil moisture levels and is a good start ahead of planting season.
Total production for Brazil’s corn crop is now seen at 119.1 mmt compared to 121.5 mmt in the previous estimate. There have been beneficial rains falling in the key growing state of Mato Grosso, but soil moisture in many areas is reportedly too low.

Soybeans are trading lower this morning but remain slightly above the 50-day moving average. Pressure is coming from lower palm oil which has brought soybean oil lower, but meal is trading slightly lower as well.
Tomorrow, the USDA will release its Quarterly Stocks and Acreage report, and estimates are calling for an increase in planted acreage by 2 million acres to 85.35 ma. Stocks are expected to increase from a year ago to 1.828 billion bushels.
Export of Brazilian soybeans are seen at 13.39 mmt in March which compares to the estimate of 14.01 mmt last week. Export sales in the US have been slow as Brazil maintains the competitive advantage.

All three wheat classes are trading slightly lower this morning after closing significantly lower yesterday and failing at the 6-dollar level at the beginning of the week.
Temperatures in winter wheat areas fell into the low teens yesterday, but this occurred after crop ratings were already reported. In Kansas, the poor to very poor rating was applied to 13% of the crop which is nothing compared to last year’s 52% at this time.
Tomorrow’s USDA report is expected to show total wheat plantings at 47.7 million acres for 24/25 with 35.1 ma of winter wheat, 10.9 ma of spring wheat, and 1.7 ma of durum. Wheat stocks are expected to be higher than a year ago.

Amanda Brill