Mar 16 Morning Ag Commentary

by Michael Niemiec,

Wheat prices overnight are down roughly 2 cents in the SRW, down 7 in HRW, and up 1 for Spring; Corn is down 1; Soybeans up 5 cents; Soymeal up $3.00, and; Soyoil down 20 points.

For the week, Winter Wheat prices are down roughly 12 cents for SRW, down 11 in the HRW, and down 2 for HRS; Corn is down 4; Soybeans up 8 cents; Soymeal up $1.00, and; Soyoil up 35 points (July crushing margins are down roughly 4 cents around $1.23).

Chinese Ag futures (May) settled up 63 yuan in Soybeans, up 9 in Corn, up 10 in Soymeal, up 10 in Soyoil, and up 20 in Palm Oil. The Malaysian Palm Oil market was down 23 ringgit at 2,418, basis May, on worries of a rise in output.

The South American weather forecast has another round of showers and thunderstorms in Argentina Saturday into Monday; precipitation from this will occur in many of Argentina‚Äôs crop areas; however, the most significant and meaningful moisture is expected in central and northeastern Buenos Aires, Entre Rios, southern Santa Fe, and southeastern Cordoba——-Frequent, scattered shower and thunderstorm activity is seen in most crop areas of Brazil through Wednesday.

The U.S. Plains had the GFS model run decreased precipitation in central portions of the Hard Red Winter Wheat Region Mar. 25-27; the GFS model run increased precipitation in central portions of the Hard Red Winter Wheat Region Mar. 28-30.

The player sheet had funds net sellers of 7,000 contracts of SRW Wheat; net sold 8,000 Corn; bought 9,000 Soybeans; net sold 1,000 lots of Soymeal, and; bought 4,000 Soyoil.

We estimate Managed Money net short 50,000 contracts of SRW Wheat; net long 178,000 Corn; net long 163,000 contracts of Soybeans; net long 98,000 lots of Soymeal, and; net short 8,000 lots of Soyoil.

Preliminary Open Interest saw SRW Wheat futures up roughly 1,400 contracts; HRW Wheat up 1,200; Corn up 18,200; Soybeans up 9,300 contracts; Soymeal up 770 lots, and; Soyoil up 375 lots.


Wire story reports U.S. corn merchants have sold in excess of 650 million bushels since early January, shockingly more than usual for any time of year, and the demand prospects continue to look good as of mid-March with the U.S. product plentiful and attractively priced.

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2018-03-16T12:13:27+00:00 March 16th, 2018|