Well I am sure it comes as no shock to anyone that the USDA weekly crop progress report shows planting at 50% this week vs. 19% last week, and 22% on the 5 year average. Around here most areas' are higher then that. Corn has little fundamental support as most expected the U.S.D.A to show planting progress between 45% and 50% in its crop progress report Monday afternoon. The record pace for this week is 52%. Weekend rains were considered good for the crop, and more rains in the forecast are not seen as a major problem for U.S. planting as a whole. Considering wheat's slide, corn "held its own." Funds sold an estimated 2,000 contracts Monday, but traders and analysts say that in general the funds have been supporting prices. One analyst noted there are a lot of investors who see the Ag commodities, primarily corn and soybeans, as undervalued relative to their alternative investments, such as crude and stocks that are at their 19 month highs.
Soybean futures ended modestly lower, unable to sustain early price strength on technically oriented selling pressure. Futures experienced two-sided trading action, with technical and seasonal buying giving way to profit taking pressure after fund buying was exhausted. Positive seasonal buying patterns and carryover technical buying led prices near four-month highs in early trade. However, without fresh supportive news, a record large South American harvest and record projected U.S. plantings futures had little support to sustain the advances. Concerns that heavy Midwest rains may stall corn seedings and possibly lead to additional soybean acres helped take some edge off prices as well.
Chris Spurlock
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