Grains Look Bullish With A Lower Dollar & Higher Equities
A higher start is likely this am, around 3-5 wheat, 1-2 corn and 7-10 beans. Crude oil is lower, which is negative for the grains, especially corn and bean oil due to their bio fuel connection with crude oil, but equities are higher and the $ is lower, a bullish combination for all the grains. Traders will keep watching these outside markets today for direction in the grains.
The National Oilseed Processors Association February crush was 128.7 million bushels, roughly 3.5 million higher than expected. Oil stocks were 2.501 billion lbs. Deliveries this am were 500 wheat, 700 corn, 150 beans, 36 meal and 300 oil. The new crop (Dec corn/Nov beans) ratio ended under 2:1 Friday. This will encourage more corn and less bean planting this spring if the ratio stays this narrow. A ratio around 2.25:1 is considered neutral. Lower than this favors more corn planting and higher than this favors more bean acres.
On Friday, Informa estimated farmers would plant more beans than corn, 81.5 million acres to 81.4 million, respectively. Most traders think Informa is too low in their corn guess, too high in their bean estimate. If they are right, this would be the first time in over a quarter century farmers planted more beans than corn. The Fed will announce any changes in their interest rate policy Wednesday at 1:15pm US Central time. This could have a big impact on financial markets as well as the grains and traders are waiting eagerly for this announcement.
Argentina will see mostly dry weather this week following a dry weekend, increasing stress on late developing beans. Brazil saw up to 1" of rain over the weekend in the north, further slowing corn and bean harvesting. More unwelcome rain is predicted in the north this week with light, welcome rain forecast in the south the next couple of days. It will be hot and dry in China's winter wheat belt the next few days but cooler and wetter weather is expected later in the week and over the weekend.
Light rain fell in parts of the US southwest winter wheat belt over the weekend, Texas and Oklahoma, but Kansas was mostly dry. Mostly hot and dry weather is forecast this week but the 6-10 day sees a chance for cooler and wetter weather in the northern part of the belt. Meteorlogix Weather thinks it will stay dry in the driest part of the region during this time, increasing stress on the crop. -- Vic Lespinasse
The National Oilseed Processors Association February crush was 128.7 million bushels, roughly 3.5 million higher than expected. Oil stocks were 2.501 billion lbs. Deliveries this am were 500 wheat, 700 corn, 150 beans, 36 meal and 300 oil. The new crop (Dec corn/Nov beans) ratio ended under 2:1 Friday. This will encourage more corn and less bean planting this spring if the ratio stays this narrow. A ratio around 2.25:1 is considered neutral. Lower than this favors more corn planting and higher than this favors more bean acres.
On Friday, Informa estimated farmers would plant more beans than corn, 81.5 million acres to 81.4 million, respectively. Most traders think Informa is too low in their corn guess, too high in their bean estimate. If they are right, this would be the first time in over a quarter century farmers planted more beans than corn. The Fed will announce any changes in their interest rate policy Wednesday at 1:15pm US Central time. This could have a big impact on financial markets as well as the grains and traders are waiting eagerly for this announcement.
Argentina will see mostly dry weather this week following a dry weekend, increasing stress on late developing beans. Brazil saw up to 1" of rain over the weekend in the north, further slowing corn and bean harvesting. More unwelcome rain is predicted in the north this week with light, welcome rain forecast in the south the next couple of days. It will be hot and dry in China's winter wheat belt the next few days but cooler and wetter weather is expected later in the week and over the weekend.
Light rain fell in parts of the US southwest winter wheat belt over the weekend, Texas and Oklahoma, but Kansas was mostly dry. Mostly hot and dry weather is forecast this week but the 6-10 day sees a chance for cooler and wetter weather in the northern part of the belt. Meteorlogix Weather thinks it will stay dry in the driest part of the region during this time, increasing stress on the crop. -- Vic Lespinasse
posted by InsightPublishing at
8:29 AM
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